Can I hold the shares for long term by the pledging my shares

General
1

Can I hold the shares for long term by the pledging my shares.

I have 1 lakh worth of shares in my account. By pledging that shares I will get 70 k margin. By using that margin if I purchase shares for how long I can hold that shares.

Can I hold that shares for long term. I mean for 1 year.

My question is

By pledging the shares we will get margin. From that margin if I purchase shares for how long I can hold that shares

2

Hi @Manu_Y

Margins from pledging your shares can be used for only Equity Intraday trading, futures & options writing (equity and currency F&O). One cannot purchase shares again for long term with that pledged amount

3

Any other instruments that can be pledged for buying long term share holding?

4

You need to look at MTF facility. Some brokers offer it.

5

@Meher_Smaran

Thank you for your answer. But can I hold shares for long term using MTF. One of my broker told that it is possible to hold shares For long term which have bought using MTF.

My question is

Is it possible to hold shares for long term using MTF?

6

In summary, while it’s technically possible to hold shares for the long term using MTF, it’s generally not recommended due to the increased risks and potential for unexpected losses. Long-term investing is typically best done with a conservative approach that minimizes leverage and focuses on fundamentals rather than short-term price fluctuations. If you’re considering using MTF for long-term investing, it’s essential to fully understand the risks involved and consider alternative strategies that may be more suitable for your investment goals.