Mutual Fund Pledged?

Mutual Fund Investing
1

Can we pledge mutual fund bought through Dhan ? and use margin as liquid / cash collateral ?

2

Hi @Kinjal

Welcome to the Dhan Community.

This is an initial phase of our release, and we assure you that there will be further updates coming your way in the upcoming months.

6

Plz bring mutual fund pledge option for margin.

7

Hi @SouvikPaul

Mutual Fund pledging for margin it’s currently in the testing phase. We’re working to ensure a seamless experience before rolling it out—stay tuned for updates!"

8

@SouvikPaul

As Dhan Currently have SOA formate for MF… Will MF in SOA allow to Pledge ?

9

Once demat MF then only we ll be able to pledge.

10

@SouvikPaul Thanks for your reply… but by mistake you have tagged.

Concern is if I am already holding MF in SOA will allow to pledge?

@Divyesh @Saurav.P please do needful.

11

Hi @dvpandya90

SEBI regulations say that if you want to pledge securities like Stocks or Mutual funds it has to be done through a recognized depository like CDSL or NSDL.

Here’s why SOA-based Mutual funds don’t qualify for pledging:

  • Real-time vs. Batch Processing – When stocks are pledged, margin benefits is provided in within minutes. But SOA-based Mutual Fund transaction are updated in batches (daily) by RTAs, leading to delays and extra risks.
  • Lien Marking & Redemption Control – Pledged securities have a “lien” marked on them, which stops them from being redeemed without the brokers permission. With SOA-format Mutual funds, investors can still redeem units directly from the Asset Management Company (AMC), which is risky for Brokers.
  • Regulatory Compliance – Since these Mutual funds aren’t held in a depository, they don’t fit within SEBI’s standardized pledge/repledge framework, which is needed for margin benefits.

So, long story short Mutual funds in SOA format just don’t work for pledging

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12

Is MF pledging going to be available this month, Would be good to have it before the FY ends.

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