Treasury Bills (T-Bills) with a maturity of 364 days can now be pledged for collateral margin for trading. List of T-Bills that can be pledged is available here: Approved list of Securities at Zerodha. – Google Sheets
How to pledge T-Bills?
Pledge request can be placed from Console, the process remains the same as it is for pledging stocks and mutual funds. You can check the process here: How to pledge securities to get collateral margin?
What are T-Bills?
T-Bills are short-term debt instruments issued by the RBI on behalf of the government. These are issued across maturities of 91, 182, and 364 days.
T-Bills don’t pay interest, instead, they are issued at a discount and redeemed at par. For example, if you invest in a 364-day T-Bill this can be issued at Rs. 94 when it matures, you will receive Rs. 100. The difference of Rs. 6 being your return.
How to invest in T-Bills?
T-Bills open for investing on Mondays and close on Tuesdays. You can invest in T-Bills and other government securities on Kite.
You can check the process here👇
Issuance calendar for upcoming T-Bills: Issuance calendar for Treasury Bills
Learn more about Government securities on Varsity: Government Securities – Varsity by Zerodha
If you have any questions on investing in government securities, ask them here: Ask us anything about investing in government bonds, treasury bills (t-bills) and state development bonds (SDLs)
6 Likes
@ShubhS9, like when we pledge G-secs:
a) T-Bills will also get unpledged 30 days before their maturity?
b) a new T-Bill issue might take a month or so to get approved for pledging by the Clearing Corporation?
Yes, T-Bills too will be unpledged 30 days before maturity.
Yes.