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MTF Product

Margin Trading Facility is the additional product offered by IFIN to its existing and new customers to buy the IFIN approved shares with required upfront margin and those upfront margin can be in the form of Cash or Collateral shares. All collateral shares and MTF purchased shares will be pledge marked and will be reported to the exchange on daily basis as SEBI MTF reporting. All Collateral pledge request should be entered in back office under the below said Pledge Demat ID. Stocks which are pledged under normal margin will not be considered for MTF, MTF collateral pledge are exclusively to be maintained.


Features of MTF:

  • Investors who wish to avail the MTF need to undertake by signing/accepting additional Terms and Conditions. It ensures that investors are completely aware of the risk and rewards of trading in it.
  • Allows investors to create leverage position in securities which are not part of derivatives segment.
  • The positions can be created against the margin amount which can be in the form of cash or shares as collateral.
  • Position can be carried forward up to T+N days (T = means trading day whereas N = means a number of days the said position can be carried forward). The definition of N varies from broker to broker.
  • Securities allowed under MTF are predefined by SEBI and Exchanges from time to time.
  • Only corporate brokers are allowed to offer MTF as per SEBI regulations.


Benefits for Investors:

  • MTF is ideal for investors who are looking for benefit from the price movement in short-term but not having sufficient cash balance.
  • Utilization of securities available in portfolio/Demat Account (using them as shares as collateral).
  • Improve the percentage return on the capital deployed.
  • Enhance the buying power of the investors.
  • Prudently regulated by the regulator and exchanges.

To process the MTF request the below said are the key documents required and the copy of the documents are attached along with mail.

  • MTF Agreement to be signed by the customer (all pages to be signed by the customer)
  • MTF Terms and Condition to be signed by the customer (all pages to be signed by the customer)
  • MTF POA to be signed by the customer (Please do not mention the date)
  • MTF disbursement letter to be signed by the customer along with required details mentioned in the letter.
  • Branch Manager Recommendation mail, requesting for the MTF facility for his customer along with the disbursement value and customer remarks.

Please note all MTF mail should be forwarded to operations@ifinltd.in.

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