Can corporate bonds be pledged?
Yes, you can pledge corporate bonds held in your FYERS Demat account to obtain additional margin for trading in the derivatives (F&O) segment. These instruments are considered cash equivalents, making them valuable collateral with relatively low margin haircuts.
Steps to pledge corporate bonds at FYERS
- You can pledge listed corporate bonds via the FYERS Pledge Portal
- Approved bonds are treated as cash-equivalent collateral
- This can enhance your trading limit for futures, options, or other margin-based strategies
- FYERS applies minimal haircuts to most eligible corporate bonds
Applicable haircuts
Visit the FYERS Haircut Guide for a detailed list of instruments allowed for pledging and their associated haircut percentages.
What if...
| Scenario | What you should know |
|---|
| Your corporate bond isn’t accepted as collateral | Only SEBI-approved, listed, and rated bonds are eligible—check the haircuts page for current list |
| You want to unpledge the bond | You can initiate an unpledge anytime from the same portal; margins will be reduced accordingly |
| The bond matures while pledged | You will receive the maturity proceeds, but pledged margin benefit will be removed upon maturity |
Pledging corporate bonds is a cost-efficient way to unlock liquidity without selling your long-term investments. Ensure bonds are in your Demat account before initiating a pledge.
Last updated: 19 Jun 2025
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