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...
| Scenario | Explanation |
|---|
| You try to pledge ELSS before 3 years | Not allowed. ELSS units are non-transferable during the lock-in. |
| You want to pledge after lock-in ends | Check if the fund is approved in FYERS' collateral list before proceeding. |
| You invest in ELSS via SIP | Each SIP instalment has its own 3-year lock-in starting from the date of investment. |
| You want tax-saving benefits and margin access | ELSS provides Section 80C tax benefits and can serve as margin post lock-in. |
Last updated: 12 Sep 2025
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