Liquid BeES as collateral margin on Zerodha

Wed, 01 Jul 2026 00:00:00 +0000

Overview

Liquid BeES is a liquid exchange-traded fund that Zerodha accepts as cash-equivalent collateral, which makes it a popular way to park surplus cash and still keep it working as margin. When you pledge Liquid BeES, Zerodha credits collateral margin against it, and because the ETF is cash-equivalent, that margin is usable in full and counts toward the 50% cash portion required for every overnight futures and options position.

That is the property that sets Liquid BeES and other liquid ETFs apart from ordinary shares as collateral. Pledge a stock and its margin can fund only half of an overnight requirement; pledge Liquid BeES and it can satisfy the cash leg outright, all while the parked money continues to earn. This article explains what Liquid BeES is, why it counts as cash-equivalent under the 50:50 cash-collateral rule , the haircut that applies, what happens to dividends while it is pledged, how to pledge it, what it costs, and why it cannot be sold instantly. For the surrounding process, see margin pledge mechanics on Zerodha and pledge and collateral margin on Zerodha .

Margin on liquid funds by pledging on Zerodha

Wed, 01 Jul 2026 00:00:00 +0000

Overview

Pledging liquid funds on Zerodha turns cash you have parked in a liquid or overnight debt fund into collateral margin for futures and options, without your having to sell the fund or lose its return. The key advantage over pledging ordinary shares is that liquid funds are treated as cash-equivalent collateral, so the margin they generate is usable in full and, crucially, counts toward the 50% cash portion that Zerodha requires for every overnight F&O position.

50:50 Rule on WebNotes

Liquid BeES as collateral margin on Zerodha

Overview

Margin on liquid funds by pledging on Zerodha

Overview