How to invest in government securities (T-Bill, SDL, Long dated bonds) at Dhan since liquidity is issue in these securities? (I guess Zerodha plays role of market maker and make it easy for clients) Any plans for this investment segment?
Dhan accepts GS for pledging, however, if I’ve GS with other broker (other demate account) OR with RDG account, is there any workaround for pledging at Dhan to generate margin collateral for FnO trading?
Assuming that you are talking about primary investment, the answer to your question is yes, you can invest in government securities through Dhan. However the process is offline as of now. You can send us an email with the details of your investment and we will be happy to execute it for you. In the times to come you can expect this process to become online.
Dhan does accept government securities for pledging so long as they are in your Dhan demat account. We will not be able to pledge shares present in other broker or RDG accounts.
TBill can be pledged. However, we will unpledge instruments such as Gsec, Tbill, a month before their redemption. This is as per risk policy since we will cease to have control on the security once redeemed in user’s account.
Margin is given on basis of the underlying scrip, if the liquidity on that isn’t available, becomes difficult for Risk team to manage the position. We have some thoughts on this, working on an alternative to solve this in a better way.
Most of the Gsecs are illiquid, that doesnt mean it should not be accepted as pledge. I transferred these from zerodha where it was already pledged.
If it were a new issue - i understand your point. Also respect the point that in a margin call or wipe out - you would need to sell the holdings to recover the dues. But GOI bonds are sovereign guaranteed and has intrinsic value.
Hope you reconsider the decision.
Also send the list of ISINs you are accepting as collateral.