Can I buy stocks without bringing in Cash?

Yes, you can do this in MTF provided you pledge your stocks which you own. This is called stock collateral.


Stocks accepted as Collateral


All approved stocks as released by Exchange from time to time are accepted as Collateral. The limit will be given after reducing the haircut applied to the stock and these haircut rates are prescribed by the Exchange. For example, if the haircut fixed by stock A by NSE is 20%, then on a collateral worth 1 lakh, a 20% haircut will be applied and remaining 80000 will be added as collateral limit. This is however, subject to change from time to time.


 



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