Lein marking for NRO funds

[Fraz8984]

Dear fellow members, I just joined this community. My name is Frazier.
I am having a query regarding the 'Lein marking'.
Since few years a wealth management company is managing my mutual funds portfolio and these funds are linked to my NRO account.
I have just decided to take a loan against my portfolio NAV. So I approach my agent and he says that since my funds are linked with my nro account, they will not be able to keep my holdings as a collateral.
He further added that, they have no issues in issuing the loan and they would love that. However as per some RBI or SEBI guidelines I'm barred from taking a loan against my funds.
This guy is a trusted person and I don't have many reasons to not believe him, however I would like have a second opinion on this. The main reason for me not able to mark my funds Lein is because its linked with my NRO account.

So if anyone knows on this topic, I request you to plz share your thoughts. Any advice is greatly appreciated.
Thanks,
Frazier.

 

[arjungoyal12]

What was the actual reason for loan rejection?

 

[Fraz8984]

Like I've mentioned earlier, he is saying that since funds are linked to my NRO account, as in they don't give for NRI clients.
He says, this rule is not from his side, instead guidelines from some authority. RBI or SEBI, I forgot who it was.
So I just need to confirm that what he said is true. Or there are some alternatives.
Because I feel this rule just doesn't make any sense, why would it matter if I'm an NRI or RI, I'm asking for a loan against a collateral.

 

[Fraz8984]

Loan is not rejected, I'm not eligible for it.