Aditya Birla Money Limited

Aditya Birla Money Limited

Margin trade funding

What is Margin Trading Facility (MTF)?

Aditya Birla Money Limited provides Margin Trading Facility (MTF), one of the most attractive tools of today’s financial markets as it allows investors to leverage their funds for greater buying power and market exposure. Traders can access more capital without paying the full amount upfront, reducing risk, and increasing profits.

Your Account Balance

= 25,000

MTF gives you upto 4x buying power

= 1,00,000 (25,000X4)

Thus, your enhanced buying capacity is now

= 1,25,000

In simpler terms, despite having only Rs.25,000 in your account, you have the ability to trade with up to Rs. 1,25,000. Isn't that amazing?

Want to enhance your buying power???
MTF is your one stop solution!

MTF increases investor’s trading capacity at affordable interest rates with a super-convenient process.

Features & Benefits of MTF

Minimum margin
requirement for buying
stocks
Increased investment
capacity
Access to 900+ shares on
BSE and NSE
Longer holding periods of
up to 90 days
Ability to benefit from short-term
price movements without paying
full stock value
Trade on various platforms
including the mobile app,
web portal, and desktop
Low-interest rates on the
outstanding amount
Dividend pay-outs on
MTF open positions
Flexibility to sell shares
at any time
MTF is regulated
by SEBI

Activating Margin Trading Facility (MTF)
with ABML is simple & convenient!

Here’s the step by step process to complete your MTF pledge process:

0
Click here or type MTF
on our Business WhatsApp
No.:+91-8828800038
0
Enter your PAN
and registered
phone number
3
Confirm with OTP
4
Provide your consent
by clicking "Yes" to
activate MTF
5
Click on sign to process
E-signature
6
Complete E-signature by
entering your Aadhaar
number and OTP

Watch how it works!

Activating Margin Trading Facility (MTF)
with ABML is simple & convenient!

Here’s the step by step process to complete your MTF pledge process:

1
Click here or type
MTF on our Business
WhatsApp No.:
+91-8828800038
2
Enter your PAN
and registered
phone number
3
Confirm with OTP
4
Provide your consent
by clicking "Yes" to
activate MTF
5
Click on sign to
process E-signature
6
Complete E-signature by entering your Aadhaar number and OTP
Watch how it works!

One smart move and you are ready to Invest!

To place an MTF order at ABML, choose NSE as exchange with the product type as 'NRML' or ‘CNC’ in the order window of your Mobile app, Web terminal / EXE (Desktop trading terminal)

What is MTF Pledge?

As per SEBI mandate, when shares are bought with Margin Trading Facility, they must be pledged within the prescribed deadline to continue holding the position. The process for pledging is as follows:

1.

Check your email or SMS for
communication from CDSL.

2.

Click the link provided and
enter your PAN number.

3.

Select the stocks you want
to pledge.

4.

Generate and enter the
OTP to confirm your pledge.

Do's

  • Ensure that you pledge the shares you purchased under MTF before 11am on T+1 day of purchase, within the stipulated timeline.

  • Make informed decisions and do your research before opting for MTF trading and ensure that it is the right choice for you.

Dont’s

  • Don't neglect any Margin Shortfall, as the shares will be squared-off if the shortfall occurs, to avoid this margin top up is required.

  • Keep in mind that MTF is a form of a loan, and you will be required to pay interest on the borrowed amount.

Frequently Asked Questions

Margin required is the amount you need to pay initially to buy stocks under margin products. Margin amount can be paid either in the form of Cash, or by pledging your holdings (margin pledge).
No. MTF Facility is applicable ONLY for trading in equity shares.
Simply choose the product type 'NRML' in the order window and you're good to go!
You don't have to worry about any additional brokerage fees for MTF as the applicable brokerage slab will be the same as your normal trading account.
Yes, it's important to always maintain the required margin to avoid any shortfall and ensure a smooth trading experience.
Interest will be charged on the total debit amount in your trading account, making it easy for you to keep track of your interest charges.

FAQs on Shortfall intimation & MTF
Rights & Obligations:

The interest rate for the Margin Trading Facility will be in accordance with the applicable rate for the trading account.
Interest will be charged on the total debit amount in your trading account, making it easy for you to keep track of your interest charges.
You can easily carry forward any debits for up to 90 days, giving you the flexibility to manage your positions. If the margin value starts depreciating, you can transfer funds to maintain the minimum maintenance margin. In case of a shortfall, ABML may liquidate the position held by you to cover the required amount, ensuring that you can trade with peace of mind.
No, you can place an order in CNC category for non-approved MTF stocks. However, if payment is not made by T+6th day, the stocks will be sold in accordance with the Ageing debit policy (T+1+4).
The aging debit policy is a rule set by brokers that specifies a time frame within which clients must make payments for their purchases made using margin trading facility.
Ageing debit policy (T+1+4).
In this case, the FNO segment and MIS & CNC product in normal equity segment will be blocked for fresh exposure. Only NRML (MTF Trades) will be allowed.
Margins for MTF securities are updated daily to align with Exchange margin on the website.
You will receive an SMS and email notifying you of any shortfall amount calculated on T Day.
Only approved collateral securities are allowed to deal in MTF.
You need to top up any shortfall greater than Rs. 1000 by T+2 days before 12 hours via cash margin or securities. Add funds to update cash margin by logging mobile invest/tradelite app or ABtrade web portal. For Updating using securities which are there in your demat ac, pledge those stocks to release limits.
Yes, a risk cover of 20% must be always maintained, else funding stocks will be sold to the extent of funded value. If funding stocks are not sufficient for debit clearance.
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MTF Disclaimer

Margin Funding is subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated on 13th June 2017. The terms and conditions mentioned in rights and obligations statement issued by the Aditya Birla Money Ltd.

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