Can I pledge Bonds (Corporate, G-Secs, T-Bills, SDLs, SGBs) as collateral on FYERS?
Yes, you can pledge eligible bonds in your FYERS Demat account to obtain additional margin for trading in the derivatives (F&O) segment. Pledged securities act as collateral and are treated as cash equivalents where permitted. The margin benefit depends on the type of bond and the haircut applied.
Eligible instruments for pledging
- Corporate Bonds: Accepted. Most listed and SEBI-approved corporate bonds can be pledged. These are treated as cash equivalents with relatively low margin haircuts.
- Government Securities (G-Secs): Accepted.
- Treasury Bills (T-Bills): Accepted.
- State Development Loans (SDLs): Not accepted for pledging at this time.
- Sovereign Gold Bonds (SGBs): Accepted. SGBs can be pledged as collateral but are not considered cash-equivalent. Haircuts may be higher compared to G-Secs or T-Bills.
Where to pledge?
- Visit the FYERS Pledge Portal.
- Select the securities you want to pledge.
- Review applicable haircuts and confirm your pledge.
- To know the step-by-step process of pledging in FYERS Web or App, refer to this article.
Applicable haircuts
The haircut percentage depends on the bond type and its credit rating.
Check the approved list of securities and haircut values here.
What if...
| Scenario | Resolution |
|---|
| Your corporate bond isn’t accepted as collateral | Only SEBI-approved, listed, and rated bonds are eligible. Check the Haircuts Guide for the current list. |
| You try pledging SDLs | SDLs are not supported. Consider pledging G-Secs, T-Bills, or approved corporate bonds instead. |
| You want to unpledge a bond | You can initiate an unpledge anytime from the same portal. Your margin benefit will reduce accordingly. |
| The bond matures while pledged | You will receive maturity proceeds, but the margin benefit will be removed once the bond matures. |
Important: Only SEBI-approved instruments are eligible for pledging. SDLs are not supported. Ensure the bonds are available in your Demat account before initiating a pledge.
Pledging bonds is a cost-efficient way to unlock liquidity without selling your long-term investments. Always review haircut values before pledging.
Last updated: 25 Sep 2025
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