This is a product to facilitate funding of delivery based investments.
>Unlike NBFC or a bank, the client is freed from;
> Extensive paper work
> Frequent pledging and un-pledging formalities.
> Frequent money transfer to and from the banks to save on interest cost due to varying needs from time to time.
> No forceful square-off on 5th day of pay-in as SEBI guidelines force us to square-off deliveries whose debits are not cleared.
> SEBI regulation of locking account for further trading due to continuous debit is also not applicable to MTF accounts.
> Margin required in MTF account is slightly higher as compared to regular account.
> Only Group I approved securities can be traded in MTF account. However, it covers 90%+ market volume.
>Equity shares in demat form that are classified as 'Group I Security' as defined in SEBI Master circular No. SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016, Chapter 4, shall be eligible for margin trading facility.
> This list is periodically reviewed and subject to change from time to time as per guidelines from SEBI & exchanges.
> RWSPL reserves the right for stock selection under MTF and may at its sole discretion, exclude any shares from the list on any exchange without any prior intimation.
Initial margin deposit can be in all or any one form of collateral security as follows.
>By depositing cheque in your margin trading account with RWSPL.
> Fixed deposits with banks with lien in favor of RWSPL.
>Bank Guarantees assigned in favor of RWSPL.
>Equity Share in demat that are permissible for the MTF facility.
The value of shares provided as collateral security shall be determined after deducting the share-specific risk value from the market value. Share specific risk value is the sum of the below four components, calculated on real time basis.
>Value at Risk (VAR) as prescribed from time to time by exchanges.
>Extreme Loss Margin (ELM) as prescribed by exchanges from time to time as follows.
> For “Group I Securities” available in the F&O Segment – 3.5 times applicable ELM
> For “Group I Securities” other than F&O segment – 5.5 times applicable ELM.
>Additional margin component as prescribed by RWSPL from time to time.
>Any additional margin prescribed by exchanges or SEBI from time to time.
There is no account opening charge for MTF account.
There are no additional charges for MTF facility. Tariff charges opted by you in your normal account will be also be applicable for all trades executed in MTF.
Any individual or entity who is a registered client of RWSPL and has provided PoA for the demat account can avail this facility.
If the client is having a regular trading and demat account with POA, his/her MTF account can be activated within few minutes using OTP system given in client web login. Your RM can also help you to do so.
Yes, you can continue to trade in your regular trading account (including F&O segment) after activation of you MTF account and limits provided will be fully fungible.
Once your MTF account is activated, you can execute trades by selecting ‘MTF’ as the product type in the order entry window from ODIN Diet or mobile trading app. While placing order on phone, you may give appropriate instruction to your RM.
Yes, you can shift the trades from MTF to Normal trade and vice versa during trading hours from the trading terminal or mobile app, provided sufficient limit is available.
Once the trading time is over, you cannot move your trades from regular to MTF or vice versa.
The movement of funds and securities from MTF account to regular account and vice versa will be carried out automatically by our back-office software. The back-office algorithm will allocate resources in optimal manner so as to ensure best possible compliance of margin. The independent margins as well as the exposure limits in both the accounts will stand amended accordingly for trading on the next working day.
As per SEBI guidelines, broker will have to collect 25-45% margin depending on the stock. Hence one can assume that one will get 2 to 4 times limit under MTF.
Individual client limit at RWSPL is subject to maximum allowable as per SEBI guidelines and subject to periodic revision. Client will have to regularize any shortfall after such revision. Further, RW may choose to charge higher margin or not provide MTF facility on certain securities.
Current system of interest will be applicable in MTF account also. Interest @ 18% p.a. with monthly rest will be applicable on debit balance in the combined ledger (Normal + MTF account).
As per SEBI guidelines, brokers are allowed to provide this facility to its customer only for the purpose of investment and trading. Hence, a customer cannot withdraw cash against the shares given as collateral. However, if the customer desire to withdraw fund to the extent of excess credit balance in the account, he/she can issue payout instruction to broker to that extent.
The funding arrangement for such stock will have to be settled and nullified immediately either by liquidating the position in such stock or payment of the outstanding amount against such stock.
If any corporate action is announced on any shares held under the MTF (Collateral Stocks and the Funded Stocks), the holding shall be re-adjusted accordingly. Any dividend announced against the shares shall be credited to your trading account as and when received.