What is the MTF Facility?
The MTF facility allows clients to get leverage for Equity Delivery i.e purchase of shares in the Cash Markets - NSE and BSE. Samco is India’s first and only discount broker to offer this facility. Now, Enter a buy position for shares in the equity delivery segment, by blocking only a part of the amount required for the full transaction. Get Leverage upto 4x based on the shares bought in the Equities segment. In simple terms, you can now buy stocks of up to Rs. 4,00,000 with only Rs. 1,00,000 Cash available in your trading account. Samco will fund the balance Rs. 3,00,000 to fulfill your exchange obligations.
Who can subscribe to this facility?
Existing Samco customers can subscribe to this facility by agreeing to the terms and conditions from the Samco Star and Samco app.
What shall be the charges levied for the same?
A charge of 0.05% per day for each day on the outstanding debit balance of your account. In case of zero or credit balances, no such charges shall be levied.
How much leverage can I get under the MTF Facility?
Leverage in the MTF product ranges from 2x-4x of the margin available. For details, refer to the CashPlus margin calculator .
How do I place an order to avail leverage under the MTF product?
To place leveraged orders for delivery trading, place orders in the "NRML" product type in the Samco Trading Terminals.
What happens if there is a margin shortfall?
Clients shall be comminucated of any margin shortfalls via SMS and Emails. Clients should meet the margin calls immediately to avoid the square-off of open positions.
What happens in case I’m unable to pay off the margin call?
In case you are unable to pay-off a margin call on account of margin shortfall, your open positions shall be squared off and your accounts shall be settled accordingly post square-off.
How many scripts are available for margin trading under MTF?
Over 500+ stocks shall be available for margin trading in the CashPlus product.
For how long can I carry the oustanding debits on my account?
You can carry outstanding debits on the account for as long as the margins maintained in your account exceed the prescribed margins. Note that client accounts shall be subject to the monthly/quarterly settlement compliance requirements of the SEBI and the stock exchanges.
What shall be the brokerage applicable for such trades?
Brokerage charged for MTF trades shall continue to be charged as per the normal brokerage tariff i.e. Rs. 20/transaction or 0.05% (Intraday) or 0.5% (Delivery), whichever is lower.
What shall be the price considered of open positions?
Average Price of the open positions shall be computed on a FIFO (First-In-First-Out) basis. Hence the open average price displayed in the Samco Trading Terminals and Samco Star shall be the price as computed on a FIFO Basis.
Can I convert my existing Intraday positions to MTF positions prior to the end of the day?
Existing Intraday positions can be converted to MTF positions by using the Position Conversion window and converting positions to the “NRML” product type in the Samco Trading Terminals. This shall be required to be done prior to 3:15 PM before close of markets.
Can margin trading under MTF be used for Derivatives Trading?
No. It can be used only for the Equities Segment and not for derivatives trading.
When will my blocked margins be released and how soon can I initiate fresh positions under the MTF product?
As soon as you square off your margin positions, your margins blocked, if any shall be released immediately and you shall be able to initiate fresh trades for the same with the available margins.
How can I convert these margin positions to normal holdings?
All NRML margin positions bought forward can be converted to CNC holdings.
For how long is my subscription valid?
MTF subscriptions shall be valid for life time.
Can the MTF facility be used for trading on both the BSE and the NSE?
Yes. The MTF facility can be used for trading both on the BSE as well as the NSE. However positions built on the BSE cannot be sold on the NSE and vice-versa. In case of any further queries, please raise a ticket on the Support Helpdesk in the Technical Department section.
