FAQs

  • What is MTF?

    • Margin Trading Facility (MTF) is a facility offered to an investor in buying shares and securities from the available resources by allowing him to pay a fraction of the total transaction value called a margin. The margin can be given in the form of cash or shares as collateral depending upon the availability of the respective investor. In short, it can be termed as leveraging a position in the market with cash or collateral by the investor. In this transaction, the broker funds the balance amount.

  • Can investors create a position under MTF against shares as collateral?

    • Yes. Investors are now allowed to create a position under MTF against shares as collateral as well. SEBI and Exchanges monitor tightly the securities eligible under the MTF and margin required (through cash or shares as collateral) on such securities are prescribed by them from time to time. Currently, the securities forming part of Group 1 securities are included in MTF.

  • What are the features of MTF?

    • • Allows investors to create leverage position in securities which are not part of derivatives segment.
    • The positions can be created against the margin amount which can be in the form of cash or shares as collateral.
    • Position can be carried forward up to T+N days (T = means trading day whereas N = means a number of days the said position can be carried forward). The definition of N varies from broker to broker.
    • Securities allowed under MTF are predefined by SEBI and Exchanges from time to time.
    • Only corporate brokers are allowed to offer MTF as per SEBI regulations

  • What are the benefits to Investors?

    • MTF is ideal for investors who are looking for benefit from the price-movement in the short-term but not having sufficient cash balance.
    • Utilization of securities available in portfolio/demat account (using them as shares as collateral).
    • Improve the percentage return on the capital deployed.
    • Enhance the buying power of the investors.
    • Prudently regulated by the regulator and exchanges.

  • How can avail margin trading facility?

    • 1. Login with the client code & verify the same with an OTP
    2. Understand & agree to the terms & conditions. It is of paramount importance that one should understand their risk-return profile before entering an MTF offering.
    3. Complete the process with an e-sign.
    4. You will receive a confirmation message via mail & mobile with the attached T&C e-signed.
    We offer the MTF under the product category called SEBI MTF wherein one can create a position on NSE.

  • Who can avail margin trading facilities?

    • Margin Trading Facility (MTF) is extended to existing clients who are active in trading NSE. However, NRI clients shall not be eligible for MTF.

  • How do I place an order under MTF?

    • You will be able to place orders at the Normal Segment and MTF based on the consolidated margins. Orders can be placed online or offline. Orders under NSE MTF need to be marked by you as MTF products. If there are sufficient collaterals under your respective MTF Collateral account, the marking shall be accepted by us.

  • How long can I keep a debit balance under an MTF account?

    • You can keep the debit under MTF as long as it is supported by sufficient Collateral subject to the terms and conditions.

  • Do I get a separate contract note for Normal trades & Margin Trades?

    • No. But the trades under MTF need to be distinctly identified. So, for all other purposes, the trades are executed at the Exchanges in a single UCC, and all levies, including STT, shall be levied as per a single UCC.

  • What is the rate of interest for MTF?

    • The cost of availing the facility is only 0.0576% per day (Annualized @ 21%) on the daily ledger balance.

  • Can I withdraw funds from my MTF a/c?

    • In case you wish to withdraw available credit from your MTF a/c, you need to inform us or send an email to mtf@acumengroup.in.

  • Can I transfer stocks toward the Initial margin?

    • Yes. You may transfer the initial margin in the form of Cash/ securities approved by us to our MTF securities collateral account. The client can then start trading under NSE MTF. During the end-of-day process, collateral will be shifted by us to the respective exchange where the trade is executed.

  • How do I move Collateral from the beneficiary to MTF Collateral?

    • You can send us a request mentioning the exchange in which the beneficiary is to be parked as collateral. The shifting is allowed with the specific understanding that dues in the normal account will be liquidated by you through the sale of stocks, and equivalent purchases will be made in the MTF account.

  • Can I withdraw part of the funded stocks where the stock value has appreciated beyond the MTF dues?

    • No. Funded Stocks can be released only on clearance of MTF dues and accrued interest.

  • Do I need to maintain the required margin at all times for the MTF?

    • Yes.

  • Can I do a short-selling under MTF?

    • No. Short selling is not allowed.

  • What are the types of Stocks dealt under MTF?

    • Only Equity shares that are classified as Group I Security shall be dealt with under MTF.

  • What is the Brokerage applicable for MTF?

    • The brokerage slab shall be the same as applicable to the Normal Trading Account.

  • Do I have a separate client code for normal trading and MTF?

    • No.

  • How can I transfer shares from my POA a/c to MTF collateral a/c?

    • You can transfer shares from your POA a/c to MTF collateral a/c by delivery instruction slip, written request, or a request from your registered email address.