Can ELSS funds be pledged for F&O trading on FYERS?

Can ELSS Funds Be Pledged for F&O Trading on FYERS?

Yes, ELSS (Equity Linked Savings Scheme) mutual funds can be pledged as collateral for F&O trading on FYERS—but only after the 3-year lock-in period ends and if the specific fund is approved in FYERS’ collateral list.

Pledging ELSS Mutual Funds on FYERS

ELSS funds are equity-oriented tax-saving mutual funds that come with a mandatory 3-year lock-in period. During this time, units cannot be sold, redeemed, or pledged.

Once the lock-in ends:

  • You may pledge ELSS units as collateral for margin in F&O
  • Pledging is allowed only if the fund's ISIN is listed in FYERS' approved collateral list
  • Margin benefit is subject to haircut rates applicable to mutual fund collateral
After the lock-in, verify the ELSS fund’s ISIN against FYERS’ approved collateral list before initiating a pledge request. Only listed ISINs are accepted for margin funding.

What If...

ScenarioExplanation
You try to pledge ELSS before 3 yearsNot allowed. ELSS units are non-transferable during the lock-in.
You want to pledge after lock-in endsCheck if the fund is approved in FYERS' collateral list before proceeding.
You invest in ELSS via SIPEach SIP instalment has its own 3-year lock-in starting from the date of investment.
You want tax-saving benefits and margin accessELSS provides Section 80C tax benefits and can serve as margin post lock-in.

Last updated: 17 Nov 2025