Margin Trading Funding (MTF)

Q1. What is MTF ?

Margin Trading Facility (MTF) allows eligible clients to purchase approved stocks which are eligible securities for MTF Funding by paying only a part of the total transaction value, while the remaining amount is funded by the broker. Interest is charged on the funded amount until it is repaid.

Q2. Who is eligible to use MTF?

Clients with an active trading and demat account who have completed all regulatory requirements and accepted the MTF terms and conditions are eligible to use the facility.

Q3. In which segment is MTF available?

MTF facility for eligible securities traded in NSE and BSE Cash Segment.

Q4. Which stocks are eligible for MTF?

Only stocks approved under the Margin Trading Facility (MTF) are eligible for funding. The list of eligible securities is determined in accordance with exchange regulations and the broker's internal risk management policy.

The eligible stock list is reviewed periodically and may be updated based on factors such as liquidity, volatility, market conditions, and regulatory guidelines. As a result, stocks may be added to or removed from the MTF list from time to time.

You can view the latest list of MTF-eligible stocks on our website MTF funded stock or trading platform before placing an order.

Q5. What happens if I do not maintain the required margin?

If the required margin is not maintained, you receive a notification regarding the short margin via email or SMS. If the shortfall is not met within the stipulated time, the exchange squares off the position in accordance with applicable regulations and its risk management policy.

Q6. Can I sell my MTF holdings at any time?

Yes. Eligible MTF holdings can generally be sold during market hours. The sale proceeds are first adjusted against the funded amount, interest, and applicable charges.

Q7. What is the interest rate applicable for MTF?
Interest is charged on the amount funded by the broker under the Margin Trading Facility (MTF). The applicable interest rate 18% pa.

Interest is calculated on a daily basis on the outstanding funded amount and is charged until the amount is fully repaid or the MTF position is closed.

Q8. How can I place an MTF buy order?

To place an MTF order:

1. Select an ( MTF funded stock )approved stock.

2. Choose the **Pay Later MTF option** while placing the buy order.

3. Ensure sufficient cash margin and collateral is available.
4. Place the order after confirming the MTF funding option.

Q9. What are the maximum MTF funding limits?

The applicable funding limits are:

· Maximum funding per script: ₹10 lakh

· Maximum total MTF funding limit: ₹50 lakh per client

Limits may vary based on stock eligibility and risk management requirements.

Q10. Can I convert an MTF position into a normal delivery holding?

Yes. Once the funded amount is fully repaid, the position can be converted into a regular delivery holding as per the broker's process.

For conversion:

· Client must inform Swastika create a ticket before 4:00 PM on the trading day.

· Conversion request will be processed and completed by End of Day (EOD).

· Required funds must be available for completing the conversion.

Q11. How can I exit my MTF position?

Clients can exit MTF positions by selling the MTF holdings through the trading platform.

Once the position is sold, applicable funding and interest obligations will be adjusted.

Q12. Can I hold MTF shares for a long period?

Yes. You can hold MTF-funded shares for an extended period, provided you continue to meet the applicable margin requirements and comply with the broker's MTF policy.

Q13. What happens if the stock price falls?

If the market value of the stock decreases:

· Additional margin may be required.

· Client must maintain sufficient margin.

· Failure to maintain margin may result in risk reduction or square-off of positions.

Q14. What are the risks involved in MTF?

MTF involves leverage and market risk. Clients should understand that:

· Both profits and losses can increase due to leverage.

· Additional margin may be required if the value of securities changes.

· Positions may be squared off if margin requirements are not maintained.

Q15. How is interest calculated?

Interest is charged only on the funded amount and is calculated on a daily basis. It continues until the outstanding amount is repaid.