Find below the terms and conditions a client has to sign before activating MTF product.
TERMS AND CONDITIONS OF MARGIN TRADING FUNDING (MTF)
MARGIN TRADING FUNDING (MTF) is the facility offered by M/s Navia Markets Ltd, (Navia) to finance its clients for the purchase of shares and securities and allow them to take a benefit of trading opportunities by taking delivery of shares on margin. (The product hereinafter named as MTF). I am a registered client with M/s Navia Markets Ltd and I have opened an MTF Account with Power of Attorney (POA). I would like to purchase shares and securities through MTF in the Capital market of NSE segment. My Trading account No (UCC) I hereby accord my consent to avail this MTF product facility and shall deposit approved Securities as collateral or cash for getting the initial margin and there by transacting in shares and securities.
I hereby request M/s Navia Markets Ltd (Navia) to grant me this facility of MTF and by agreeing to avail this facility, I have deemed to authorize M/s Navia Markets Ltd. to retain and/or pledge the securities provided as collateral or purchased under MTF facility till the amount due in respect of the said transaction including any dues to Navia Markets Ltd. is paid in full by me.
I further agree to accept and abide by all the terms, conditions, norms, instructions, advisory process etc prescribed by M/s Navia Markets Ltd in this regard and undertake to comply and assist, Navia Markets Ltd, in strict implementation thereof, I agree, accept, and acknowledge the following terms and conditions prescribed by M/s Navia Markets Ltd, for availing the aforesaid MARGIN TRADING FUNDING facility.
Terms and Conditions are;
- Navia reserves the absolute right to either allow me or refuse the aforesaid facility (MTF) on my grounds and I agree that I shall not dispute the result in any manner whatsoever,
- The minimum criteria for availing this facility is to open MTF account by accepting the rights and Obligations along with the Terms and Conditions Margin Trading account.
- Initial Margin is to be transferred by way of Cash / Collateral as prescribed by SEBI/NSE.
- All transactions in my Account shall be subject to the Margin Trading Funding rules, regulations, customs and usage of SEBI/ NSE.
- Pursuant to my use of this facility, Interest shall be charged at 2% monthly (excluding the IGST) on the amount funded for the purchase of shares.
- This facility is available only for those scrip that is traded in the segments of NSE and approved by Navia, and I cannot make MTF purchases through any other exchanges.
- The maximum credit limit for a client will not exceed 10% of the net worth of the company computed as per SEBI guidelines. However, Navia reserves the right to reduce the maximum credit limit at any time without any prior intimation or assigning any reasons thereof.
- Single scrips concentration is allowed for stocks in the NIFTY 50 index. However, for stocks other than in the NIFTY 50 index, single scrip concentration is not allowed in the MTF segment and also the client cannot transfer single scrip towards the Collateral account for availing the Collateral margin. The maximum single scrip funding limit for a client will not exceed Rs. 50 Lakhs where the scrip is part of NIFTY Next 50 and will not exceed Rs. 25 lakhs where the scrip is neither part of Nifty 50 nor Nifty Next 50.
- In order to avail margin trading, initial margin and maintenance margin required at all times shall be as prescribed by SEBI which is as under,
- MTM (Mark to Market) loss if any of the funded stocks, should be paid immediately under this funding facility.
- Margin call will be initiated by Navia Markets Ltd, at any time if the client fails to meet the daily Mark to Market.
- Losses and fails to maintain the required margin as per SEBI/NSE/NAVIA regulations as stated above.
- The margin calls to the client shall be made in the form of telephonic call / SMS to the registered mobile number/ E-mail to the registered e-mail ID.
- Upon the receipt of the Margin Call, I agree to bring additional amount within the specified time to cover the margin short fall and make good of such deficiency in the amount of margin placed with Navia.
- Margin shortfall can be replenished by way of online fund transfer/ by depositing additional Collateral stock/ by transferring the funds from the normal trading account to the MTF account.
- If there is a margin call on MTF account, and have credit balance in the Normal trading account, Navia reserves the right to transfer any clear credit balance from the Normal trading account to the MTF account. By agreeing to this terms and conditions you give Navia the explicit right to do this transfer without any intimation to you.
- Navia at its absolute discretion, may liquidate, close out/sell shares, a part of our whole position, if I fail to meet the margin call made by the Company within the specified time, without prior intimation to me.
- Margin Trade Funding allowed under this facility can be continued for a long period till it is terminated by you /Navia.
- The brokerages and other regulatory charges etc. are applicable for each trade that is executed through the funding account. (MTF).
- Navia shall at its sole discretion restrict the number of Securities available for purchases under the MTF facility.
- Navia reserves the absolute right to change the above-mentioned leverages/ exposures at any time without any further intimation.
- If there are no transactions for 90 days in the MTF account and where MTF account is in credit then the same would be settled as per the running account settlement process.
- Navia shall send the MTF trades / Collaterals / Margin requirements of the MTF trades to my registered e-mail id on a daily basis.
- I shall lodge/protest any disagreement with any transactions done under the MTF facility, within 3 days from the receipt of the contract note.
- The stock valuation of fully paid securities in the Collateral account will be determined by Navia, after applying the necessary haircuts (Var + ELM % as defined by Navia) from time to time.
- Navia reserves the absolute right to withdraw this aforesaid facility at any time without giving any reasons thereof, and I shall not protest or take a stand against Navia.
- Navia has full LIEN on Cash and Security balances in my trading account /depository account and Navia may sell such securities lying with this Demat Account. Any loss arising out of squaring off or sale of securities will be to my account and Navia will not be liable for any cost or damage or any consequences thereof.
- If this MTF facility is granted to me, I shall have no right to revoke the POA or withdraw the Collateral, unless and until all the claims, demands, loss, damages, penalties and liabilities are settled with Navia.
- Navia can terminate this MTF facility at any time if Navia surrenders MTF license/facility, or in the event of committing any breach of the terms & conditions of this agreement. In such conditions, Navia may liquidate the entire stocks/ margins and settle the dues and balance if any, shall be settled to my account.\
- MTF scheme charges of Rs. 500/- (excluding the IGST) per month are applicable for this MTF facility, however, if the monthly interest charges are more than or equal to Rs. 1000/- , monthly schemes charges shall be waived off.
- INFINI WEB (Web Trading Platform) or any other trading software as decided by the Company shall be provided for the trading in the MTF segment, but if at any time, if the client wants to use the advanced trading software ITS (INFINI Trader Solutions) for the MTF trading, then ITS charges & MTF scheme charges are applicable as per the prevailed rates.
- By signing and agreeing to the terms and conditions of MTF, I give my explicit permission to move the MTF trades to my MTF account on a daily basis.
- I have the right to terminate this facility if, at any time, Navia breaches its terms and conditions.
- I agree that I have received the Risk Disclosure document, Rights & obligations, Policies, and procedures, and read, understood and accepted the same.
- Navia and its officers, directors, employees, agents, and affiliates will have no liability with respect to the transactions in or for my MTF Account and on my investment decisions.
More information and detailed FAQ’s on MTF are available in the following link http://support.tradeplusonline.com/solution/folders/1000228571
I understand the risk fully and agree on the cost associated with this product, and acknowledge that my transactions in MTF shall be fully governed by Navia, and with its absolute discretion, may liquidate/closeout /sell of shares at such rate Navia may deem fit, and further agree to indemnify, and hold harmless Navia from any, and against all loss, damages, claims, liabilities, expenses and costs, due to such close out/squaring off the positions, if any. The above terms and conditions are in addition to the signed and accepted KYC terms and conditions, Risk disclosures documents, Risk Management policies and policies & procedures at the time of account opening and which are prescribed by M/s Navia Markets Ltd from time to time