FAQ-

1. What exactly is Margin Trade Funding (MTF) ?

Margin Funding ( MTF) is a scheme that provides you instant funding of an amount upto your Margin to enable you to increase your buying power for delivery.


2. What are the costs involved?

The cost incurred is only Rs.55 per lakh per day . The actual cost of availing MTF would be less than the amount of brokerage, if a profitable trade
( Buy + Sell) is completed within 15 days. Interest is charged only on the amount used, and only for the period it is used.

3. Why can’t I take a loan from a bank at lesser interest rate and buy shares?

MTF is NOT a loan . No bank will give you a loan for buying shares. No bank will give a LOAN for 10 or 15 days. MTF is a unique opportunity for
smart investors to maximize profits from short term trading.

4. How do I keep track of my trades and positions?

In addition to the contract notes and average analysis you receive normally, you can keep track of your MTF positions using the PROFIT AND LOSS report. You can request these reports from your branch.We also inform the scrip wise profit and loss positions by email every week.

5. What are the terms and conditions for availing MTF?

1 Funding ratio is 50: 50 (50% advance by client & 50% funding by us)
1 Eligible shares-SEBI Group I shares- as reviewed from time to time
1 Margin Trading is presently available only in NSE EQ.
1 Cost of availing the facility is only 0.055% per day (Annualized cost – 20% ) on the daily ledger balance .
1 Purchased shares will be held in a separate new Beneficiary account in the clients name under pledge and operated by us as a PoA holder.
1 All Corporate Benefits will be received by the client.

6.What are the important factors to be considered while availing MTF?

1 avail funding prudently and (only) when you spot an opportunity for profits from short term trades.
1 maintain adequate cash in reserve to meet any margin calls that may arise due to abrupt dips or erratic trends in the market
1 enter with a clear time span ( of less than 15 days on each trade ) and a clear stop loss position in mind.
1 exit any decision which may have gone wrong, at the earliest, even booking loss if need be.
1 book profits at every opportunity ( even intraday, where possible), to minimise borrowings and to optimise returns.

7.What are the risk factors?

Failure to take timely and informed decision to exit a scrip if price moves adversely or failure to book profits in time can prove costly. This scheme
is for active and alert investors. This should not be used to make passive investments.

8.What is the registration procedure to avail MTF?

Please contact your branch and execute a single comprehensive Margin Trading Agreement. Separate Demat account to park shares acquired through MTF has to be opened for the purpose.