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Asked a question 2 years ago

What does cash equivalent mean while pledging debt funds?

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Ankit Singh
Option Writing & Investments

Cash equivalent are the securities which are treated equivalent to cash component when pledged (for example liquidbees) these are safe investments and when pledged, you dont need to maintain a cash balance of 50% along with them. (But this is for brokers like Zerodha) here in FYERS we dont have a 50% cash component requirement so no need to worry about this, One of the reasons why I shifted to FYERS from Zerodha!