Why there is 10L limit in MTF per scrip
When there is 50L total limit, then it should be upto me how to use that limit
in 5 positions of 10L or 25 positions of 25L
What is the base of this 10L limit?
Remove it.
We kept these limits while taking MTF live, we will reevaluate these and increases it soon.
I think this is a risk management practice, Hemant.
MTF book is essentially a loan book for the broker and smaller tickets help the broker to spread risk per security.
Think of this like how banks want to give more smaller loans to retail, to spread risk.
Whether to make this limit up to 20l per scrip and 1 Cr per client exposure, is something we can ask the broker. Let’s see.
Currently Zerodha is offering a LAS (Loan against Securities) loan up to 1 Cr. per client. So, extending the same thing here seems likely. (Both LAS and MTF are secured via collaterals, i.e, pledged securities)
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So when can I transfer MTF shares into holdings. I have enough money to cover. There should be an option to convert MTF holdings to Normal holdings.