Revision in MTF margins
As you know, MTF (Margin Trading Facility) allows you to buy stock by paying a fraction of the total value, while the rest of the amount is funded by your broker. To hold your positions under MTF, you need to maintain a margin amount that you can either pay in cash or non-cash collateral.
Considering the current market volatility, as a prudent risk management measure, we have revised our RMS policy for trading in MTF product. The below mentioned revisions will be applicable w.e.f 25-Oct-21:
- For Bluechip category scrips, 40% flat or MTF VAR margin specified by the exchange, whichever is higher
- For Good and Average category scrips, 50% flat or MTF VAR margin specified by the exchange, whichever is higher
- No fresh MTF funding will be allowed on Average category scrips w.e.f. 25-Oct-21
Kindly plan your trades accordingly.
Please click here for the list of MTF approved Bluechip, Good and Average category scrips.