Q. what is Margin Trading Funding (MTF) Facility?
A: MTF is the funding facility offered by the Company to its customers to buy stocks with a minimum required margin and hold the stocks for a short/long term.
Q: How can I avail this MTF facility?
A: This MTF facility can be availed by opening an MTF trading account and transfer initial margin by way of cash/ collateral to purchase the shares under this facility.
Q. Can I get the MTF funding facility to my existing trading account?
A: No, it is not offered on the existing trading account, but to avail this funding, you have to open a separate MTF trading account and move the collateral if any to the separate margin funding account.
Q: Do I need to open a separate demat account for MTF funding?
A: No, a separate demat account is not required for availing this MTF funding facility.
Q: Do I need to sign an agreement apart from KYC, to open MTF account?
A: Yes, you need to sign an agreement, and have to agree to the terms and conditions of the MTF funding account.
Q: What is the amount of margin /leverage that I need to pay/have during buying stocks?
A: Required margin and leverages may vary for different stocks. See details given below
|Category of Stock
||Initial margin and maintenance margin
||Exposure allowed by Navia
|Group I stocks available for trading in the F&O segment
||VaR + 3 times applicable ELM
|Group I stocks other than F&O stocks
||VaR + 5 times applicable ELM
Q. What type of initial margin is allowed under this MTF?
A: We may allow customers to pay margin in the form of NSE Approved list of shares post hair cut or cash or cash equivalent.
Q: What is the segment and under which exchange Margin Trading Facility is offered?
A: Margin Trading Facility is available only under cash segment for selective scrip, traded in the Exchange of NSE only.
Q: What is the haircut on collateral shares given for MTF?
A: The haircut on collateral shares is 40%
Q: How do I get all details of my Margin Trading Funding transaction?
A: You will get all communication regarding confirmation of orders/trades, margin calls, decision to liquidate the position / security on your registered email/ Mobile Number.
Q: How can I identify the margin call transaction liquidated by the company?
A: Margin call transactions are marked separately in the contract note, when liquidation is initiated by the company.
Q: What happens if I transfer funds to my MTF account and have not done any trading?
A: Margin trading accounts where there is no transaction for 90 days shall be settled immediately / as per running account settlement
Q: How can I carry and hold my funded position for a long period?
A: The shares purchased under the funding account can be held by maintaining the required margin as per the margin calls for a period of upto 1 year
Q: what is the interest rate offered under this MTF funding?
A: we offer the margin trading funding facility with the interest rate @ 2% monthly.
Q: Can I transfer funds from my normal trading account to the MTF funding account?
A: Yes, you can transfer the funds from the normal trading account to the MTF account, as per the terms & conditions of the product.
Q: Is there any cash -collateral ratio for the initial margin?
A: No, under this facility there is no cash -collateral ratio.
Q: What is the meaning of margin calls?
A: Margin calls are the alerts made by the Company when there is a reduction in the amount of margin placed with the Company.
Q: Do i need to pay the Mark to Market Losses ( MTM ) on a daily basis ?
A: Yes, the Mark to Market ( MTM Loss) has to be paid by the client on a daily basis and if the MTM is not paid as per the Margin call, stocks will be liquidated to the extent of the MTM margin.
Q: What is the impact of the margin call if not honored by the client?
A: Company may liquidate the shares if the client fails to meet the margin call requirements.
Q: Is there any reporting to the exchange on a T+ 1 day of the purchases by the company?
A: Under this funding facility, Company shall report to the exchange with the client details and the funding amount offered to the client on a daily basis on or before 12 PM.
Q: Can I close/ terminate the MTF funding facility offered by the company.
A: Yes, the client can close or terminate the Margin trading account at any time after paying the dues.
Q: Can the company terminate/ close the client MTF account?
A: Yes, the Company can terminate/ close the client MTF account, in the event of client committing the breach of any terms & conditions of the MTF funding.
Q: What is the difference between a normal trading account and MTF funding account?
A: Normal trading account Company allows the client to purchase the shares and securities and hold it for a period of T+2+5 day. The account will be blocked on the 7th day and shares shall be liquidated by the Company. But under the MTF account, the client can purchase the shares and hold it for a period beyond 7 days by meeting the required margin. In the normal trading account, the client can buy under any product like CNC, MIS or NRML. But in MTF account clients can buy only under NRML and sell through CNC product.
Q: How can I buy & sell the shares under MTF facility?
A: The clients are provided two products in the trading terminal, i.e NRML for purchase, NRML & CNC for sell orders respectively.
Q: Can I have two MTF account with different brokers?
A: No, the client can avail this funding facility only from a single broker and the client has to give a declaration at the time of MTF account opening.
Q: Can I get the benefit of the corporate actions for the shares held in the MTF account?
A: Yes, the benefit of the corporate actions will be credited to your account.