Short answer

An instrument must be approved by the Clearing Corporation (CC) to qualify for pledging. While the CC may approve regular plans for certain mutual fund schemes, it may not approve the corresponding direct plans in some instances. Additionally, regular and direct plans of the same scheme may have different International Security Identification Numbers (ISINs). The CC updates the list of approved plans periodically.

Example scenario

Axis Growth - Regular is accepted by the CC, whereas Axis Growth - Direct is not.

ISIN of Axis Growth Regular Scheme: INF846K01J79

ISIN of Axis Growth Direct Scheme: INF846K01J46

The list of stocks and mutual funds that can be pledged with Arrow for margins and the applicable haircut percentage can be found by visiting arrow.trade/approved-securities.

Clients can only invest in Direct mutual funds through iRage using Arrow.