I have already pledged some amount for ex: 350k for F&O Margin. I am doing F&O Trading with this margin which has 50% Cash & 50% Non Cash components pledge as Collateral.
Queries:
Can I Use 350k Margin for MTF Trade?
Ex: I want to Brought Share Worth 100k Rupees, I will take Trade as MTF , for which I need to Pay 25k (Coming for Margin pledge for F&O), assuming 4x leverage on MTF & Rest 75k will be paid by Broker.
Assuming, I don’t hold 25k in cash. Can I take this MTF Trade without any cash in Demat Account?
Once I Brought share worth 100k Rs using MTF with 4x leverage, I paid 25K , Do I need to compulsory Pledge the entire 100k Rs Stocks as it is MTF Trade?
Currently we are not allowing this, will allow it in coming months.
Sounds Great, is there any regulatory hurdle or just technical one for implementation, just to get an idea how soon can we expect like end of Dec 2025?
Another Query:
Seems the shares brought under MTF cannot be converted in CNC by paying in Full to Broker? This is much needed Feature especially.
Ex: If Brought 1000 Shares of abc company at Rs. 100 , via MTF, I will pay only 1/4th in Cash because of Leverage offered by MTF. In Next Few Months Stock Price went to Rs. 150 and I decided to Hold that stock forever (long duration 5 years, without paying any interest as now I have 3/4 th cash availble), but as I said the price is Rs. 150. I wanted to convert the 1000 shared brought under MTF to CNC, as I have 3/4th cash available to buy at Rs.100 which are already lying in MTF.
This will give an edge to investors, to buy more shares currently and later pay at earlier brought price(Discounted Price) and convert it to CNC instead worrying about keeping margin requirement and intrest charges all the time.
Brokers will benefits as it will be an cycle for buying MTF, Converting to CNC and Buying More though in Drowndowns and offload in rallied (quite hypothetical , thought practically)
You can convert your MTF position to CNC from T+1 day onwards, provided you have sufficient funds in your account. This can be done through the Console.
Please check on this support article for a detailed information.
Thanks @KarthikAcharya regarding MTF Position conversion to CNC via console.
Can I Use 350k Margin for MTF Trade?
Currently we are not allowing this, will allow it in coming months.
Sounds Great, is there any regulatory hurdle or just technical one for implementation, just to get an idea how soon can we expect like end of Dec 2025?
Ok, but my original question was regarding , is there any regulatory hurdle in implementation such as clearing corporation, sebi, exchanges, etc,etc or just Implementation Part pending??