MTF (Margin Trading Facility) pledging is the process of pledging your stocks to maintain MTF positions as per regulatory requirements. It ensures compliance and allows you to continue using margin trading services.
How can I pledge my stocks under MTF?
You can pledge your stocks by following these steps:
● Go to Star Back Office ([Link to BO])
● Navigate to Portfolio → Pledge/Unpledge → MTF Pledge
● Enter the OTP to authorize and complete the process.
Can I sell MTF stocks without unpledging?
Yes, MTF stocks can be sold directly without placing an unpledge request.
When will I receive the sale proceeds after selling MTF stocks?
The sale proceeds from selling MTF stocks will be available for trading on the next trading day.
What happens if I don’t pledge my stocks under MTF?
If you don’t pledge your stocks by the cut-off time:
● Your MTF position will convert into a delivery trade (CNC).
● If you don’t have sufficient funds for the CNC trade, your account will show a negative balance.
● If the negative balance remains unresolved, Samco may liquidate your shares to recover the outstanding amount.
What is the liquidation policy for MTF stocks?
If there is a margin shortfall, and it is not covered within the required time frame, Samco reserves the right to liquidate the pledged shares to recover the shortfall.
What is the MTF?
The MTF allows you to get leverage i.e extra margin for equity delivery purchase of shares in the Cash Markets - NSE and BSE. Now, Enter a buy position for shares in the equity delivery segment, by blocking only a part of the amount required for the full transaction. Get Leverage/margin upto 4x based on the shares bought in the equities segment. In simple terms, you can now buy stocks of up to Rs. 4,00,000 with only Rs. 1,00,000 Cash available in your trading account. Just remember, per SEBI regulations, your positions will be auto pledged/unpledged when buying/selling through MTF, which serves as collateral and helps you hold your positions confidently.
What shall be the charges levied for the same?
When using MTF, a nominal daily interest fee of 0.05% is charged on the borrowed capital for each day the amount is unpaid. This allows you to pay the fee only for the duration you have the borrowed funds, providing flexibility in managing your positions. You can check this in the Samco ledger, where it will appear as "Interest charged on MTF funding amount of Rs 12,345 as of 10/09/2024 {Interest charged} ."
For brokerage, you can expect the fees to stay consistent, with the lesser of either Rs.20 per executed order or 0.05% being charged. This structure ensures fair pricing for your transactions.
Additionally, there is a fee of Rs.30, plus applicable GST, for every pledge or unpledge request made under MTF. You can check this in the Samco ledger, where it will appear as "MTF Pledge Request Charges for ISIN INF457M01133 Stock {Stock Name} Qty 35**5 for Client Code RA**711”
How much leverage can I get under the MTF Facility?
The MTF product provides leverage of up to 4x on your available margin, enabling you to trade on over 1,000+ stocks. For specific calculations, refer to the MTF margin calculator.
How do I place an order to avail leverage under the MTF product?
To place MTF orders via Cashplus for delivery trades, simply choose the "MTF" product type on Samco's trading platforms.
What happens if there is a margin shortfall?
Clients shall be communicated of any margin shortfalls via SMS and Emails. Clients should meet the margin calls immediately to avoid the square-off of open positions.
What happens in case I’m unable to pay off the margin call?
In case you are unable to pay-off a margin call on account of margin shortfall, your open positions shall be squared off and your accounts shall be settled accordingly post square-off.
How many scripts are available for margin trading under MTF?
Over 1000+ stocks shall be available for margin trading in the MTF product.
For how long can I carry the oustanding debits on my account?
You can carry outstanding debits on the account for as long as the margins maintained in your account exceed the prescribed margins.
What shall be the brokerage applicable for such trades?
Brokerage charged for MTF trades shall continue to be charged as per the normal brokerage tariff i.e. Rs. 20/transaction or 0.05% (Intraday) or 0.5% (Delivery), whichever is lower.
What shall be the price considered of open positions?
Average Price of the open positions shall be computed on a FIFO (First-In-First-Out) basis. Hence the open average price displayed in the Samco trading platforms shall be the price as computed on a FIFO Basis.
Can I convert my existing Intraday positions to MTF positions prior to the end of the day?
You can easily convert your existing intraday positions to MTF using the Position Conversion window on Samco’s trading platforms. Just switch to the “MTF” product type before 3:15 PM—right before the square off timing of equity market.
Can margin trading under MTF be used for derivatives trading?
No. It can be used only for the equities segment and not for derivatives trading.
When will my blocked margins be released and how soon can I initiate fresh positions under the MTF product?
As soon as you square off your margin positions, your margins blocked, if any shall be released immediately and you shall be able to initiate fresh trades for the same with the available margins.
How can I convert these margin positions to normal holdings?
All MTF margin positions can be converted to delivery holdings by simply paying off the funded amount provided by Samco.
For how long is my subscription valid?
MTF subscriptions shall be valid for life time.
Can the MTF facility be used for trading on both the BSE and the NSE?
Yes. The MTF facility can be used for trading both on the BSE as well as the NSE. However positions built on the BSE cannot be sold on the NSE and vice-versa. In case of any further queries, please raise a ticket on the Support Helpdesk in the Technical Department section.
Will my profit and loss appear in my statements if I trade using MTF through Cashplus?
Yes, your profit and loss from trades made using MTF via Cashplus will show up in your statements. It’ll be there just like any other trade.
Do i need to pledge & unpledge my securities manually if i buy positions under MTF?
No, you don’t need to manually pledge and unpledge your securities when you buy positions under MTF. Samco automatically handles the pledging/unpledging of your shares when you buy/sell positions using the Cashplus margin trading facility.
Will I receive corporate action benefits if I hold an MTF position through Cashplus?
MTF positions with Cashplus are designed to enhance trading opportunities, though corporate action benefits are available through delivery trades by converting your MTF position to a delivery trade and settling the outstanding amount. This way, you can enjoy the full benefits of your holdings!
Where can i see my MTF positions bought via Cashplus in the Samco app?
You can view your MTF positions bought via Cashplus in the Samco app by navigating to the "Portfolio" section. Once there, look for the "My Positions" tab, where you'll find all your MTF positions listed.
Can I transfer shares purchased under MTF to a different demat account?
You can't transfer shares bought under MTF to another demat account until you convert your MTF position to delivery by settling the outstanding amount.
How do you calculate the Mark-to-Market (MTM) value in Margin Trading Facility (MTF)?
Here's a simple way to calculate the Mark-to-Market (MTM) in Margin Trading Facility (MTF): First, find the cost price using the formula Cost Price = Buy Price × Quantity. Next, determine the current value with Current Value = End of Day (EOD) Price × Quantity. Finally, calculate the MTM using the formula MTM = Current Value − Cost Price.
Let’s say you bought 20 shares at ₹150 each, which means your total cost price is ₹3,000 (that’s ₹150 * 20). Now, if the End of Day (EOD) price drops to ₹120 per share, your current value falls to ₹2,400 (₹120 * 20). To find your Mark-to-Market (MTM), simply subtract your cost price from the current value, which gives you a loss of ₹600 (₹2,400 minus ₹3,000). This means you have an unrealized loss of ₹600 which will be provisionally blocked from your Samco ledger.
Easy & quick