Pledge on WebNotes

How to enable instant Liquidcase pay-ins on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Zerodha Liquidcase is a liquid mutual fund product available through Zerodha Coin that can be pledged directly to Zerodha as collateral margin, enabling near-instant margin pay-ins without selling the fund units. Unlike a conventional fund addition where money leaves the bank account and enters the trading account, a Liquidcase pay-in pledges the liquid fund units held in your demat account to Zerodha. The margin equivalent, the Net Asset Value (NAV) of the units minus a regulatory haircut, is then credited to your available margin. This allows the fund to continue earning the overnight return while simultaneously providing trading margin. This guide explains the complete process: from purchasing Liquidcase units to pledging them for margin, the applicable fees, the CDSL pledge authentication, and the unpledge process.

How to pledge holdings for margin on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Pledging holdings for margin on Zerodha allows equity investors to use their long-term portfolio as collateral for futures and options (F&O) or intraday trading without liquidating investments. The mechanism is governed by SEBI’s September 2020 pledge circular, which mandated an explicit depository-level pledge rather than the older Power-of-Attorney transfer model. For conceptual background on how the pledge mechanism works, see Margin pledge mechanics on Zerodha and Pledge and collateral margin on Zerodha.

Step-by-step procedure

Log in to kite.zerodha.com using your Zerodha client ID and password, and authenticate with your TOTP. From the left navigation panel, click Holdings. The Holdings view lists all securities credited to your demat account, along with their current market value, average cost, unrealised P&L, and whether they are free or already pledged.

How to unpledge holdings on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Unpledging holdings on Zerodha releases the lien created over your equity shares or ETFs at CDSL, converts the securities back to free delivery holdings, and withdraws the corresponding collateral margin from your trading account. The procedure is the reverse of the pledge process and is generally completed without requiring a separate CDSL TPIN OTP, since the instruction is from the client to the broker (a release instruction, rather than a creation instruction).

How to use collateral margin for F&O on Zerodha

Tue, 12 May 2026 00:00:00 +0000

After pledging securities and generating collateral margin on Zerodha, the collateral margin is ready for use in futures and options positions without any additional configuration. Kite automatically draws from the combined pool of cash and collateral when you place F&O orders. The critical constraint is SEBI’s rule that at least 50% of the total margin requirement must be in cash or cash equivalents. Understanding how to track and manage this split is the primary skill required to trade F&O on collateral efficiently.

Pledge of mutual fund units

Tue, 12 May 2026 00:00:00 +0000

Pledging mutual fund units is the process by which an investor creates a security interest over a specified quantity of units in a mutual fund scheme in favour of a lender or broker, as collateral for a loan, an overdraft facility, or trading margin. The pledge does not involve a transfer of ownership: the investor retains beneficial ownership and continues to earn returns on the pledged units, but cannot redeem or switch those units while the pledge remains active.

Pledge and collateral margin on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The pledge and collateral margin mechanism on Zerodha allows investors to use their demat account holdings, including equity shares, ETFs, and mutual fund units, as margin collateral for trading in the F&O segment, equity intraday (MIS), currency derivatives, and commodity derivatives. Instead of selling investments to fund margin requirements, investors pledge their holdings to Zerodha, which in turn re-pledges them to the clearing corporation as collateral. The holdings remain in the investor’s demat account at CDSL in a pledged state (encumbered but not transferred).

Pledge on WebNotes

How to enable instant Liquidcase pay-ins on Zerodha

How to pledge holdings for margin on Zerodha

Step-by-step procedure

Sign in to Kite and navigate to Holdings

How to unpledge holdings on Zerodha

How to use collateral margin for F&O on Zerodha

Pledge of mutual fund units

Pledge and collateral margin on Zerodha