Why am I suddenly asked to make full payment for a stock bought under MTF
A stock purchase can be funded under MTF as long as it is eligible for funding. The movement it moves out of eligibility, it needs to be paid fully.
- Stocks may become ineligible for funding due to changes in VaR margin or category (e.g., EQ to BE, Group 1 changes).
- Each stock has a varying VaR margin, updated frequently by the Exchange for RMS purposes.
- If a stock's VaR margin reaches 100%, full payment is required, and it can't be partially funded.
- For MTF purchases, if a stock's VaR hits 100% or becomes ineligible, full payment must be made. The stock will be released to your demat as a free holding or sold to reduce obligation.
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