Before investing in SGB, I would just like to know if is sovereign gold bonds accepted as collateral to trade in f&o?

Hi Amith,

Yes, we allow you to pledge SGB on our platform and use it as collateral to trade in f&o.

Yes, Sovereign Gold Bonds (SGB) can be used as collateral to trade in F&O (Futures and Options) in India. The Securities and Exchange Board of India (SEBI) has permitted the use of SGB as collateral for trading in F&O, subject to certain conditions.

To use SGB as collateral for trading in F&O, the bonds must be held in a demat account with a Depository Participant (DP) registered with the National Securities Depository Limited (NSDL) or the Central Depository Services Limited (CDSL). The DP will then provide a pledge request to the clearing corporation on behalf of the investor.

The SGB can be pledged for up to 50% of the margin required for F&O trading. The value of the SGB pledged will be calculated based on the latest available price of gold. However, it is important to note that the value of gold is subject to market fluctuations and the value of the SGB may change accordingly.