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Margin Trade Facility (MTF)

Margin Trade Financing is a facility offered to the investors or traders to increase their buying powerfor shares and securities by just paying a small amount of total value. MTF is simply a leveraged position in the market. The investor can take higher value of position by paying only a fraction of the total transaction value called margin. Margin given by the client can be in the form of cash or shares as collateral. The rest amount gets funded by the stockbroker at a nominal Interest rate.

Features & Benefits

Higher Returns:

Improve the percentage return on the capital deployed with minimum capital allocation.

Enhance the buying power:

Can avail upto 3.5 times the position of the contribution

Short term Gains:

Ideal for Traders who are looking for short term gain.

Leveraging on Stocks:

Utilization of securities available in Demat account (using shares as collateral).

SEBI Regulatuions:

According to SEBI regulations, only corporate brokers can offer MTF to their clients. Securities allowed under MTF are pre-defined by SEBI and other Exchanges and are modified on a timely basis.

Benefits you get with us

  • Hassle free documentation
  • Easy accessibility on the platform
  • MTF Limits up to ₹ 20crs.
  • Avail MTF at one of the lowest interest rates
  • Get up to 3.5X times leverage on cash & shares
  • Call & Trade Support
  • Dedicated Relationship Manager

Interest Applicable on Margin Trading Positions

  • The interest applicable on Margin Trade Financing are generally fixed by the stockbrokers and the rate of interest depends on broker to broker. The interest calculation again varies from broker to broker but in general rule, the calculation is mentioned below:
  • Annual Interest Rate * Amount Borrowed = Output * Term of the Loan
  • Illustration: Let’s say you have availed the MTF for a period of 24days, then the amount will be multiplied by 24/365 to get the payable amount.
  • With BFSL, avail MTF at one of the lowest interest rates.

Margin Trading Faq's

No, Margin Trade Financing is a funding system which doesn’t give an option to execute Intraday trades. Intraday trading cannot be done under Product Code – MTF.

Interest on MTF depends on broker to broker. With Bajaj Financial Securities, you can avail MTF at one of the Lowest Interest Rates.To avail MTF and know more, visit: https://samadhan.bajajfinservsecurities.in/margin-trading/sub/mtf-facility

Margin Trade Financing is a facility where Investors get funded by the stockbroker in order to increase their buying power. The investors or traders can buy stocks which they cannot afford by paying a small margin amount of the actual value, it can be through cash or keeping securities as collateral. The margins later are settled when you square-off your position.

When you avail MTF from a SEBI registered stockbroker, you are required to maintain a minimum balance in your trading account. If you do not maintain the balance, your stockbroker can close your open positions inn order to bring in the minimum value which is referred as forced sale or liquidation.

Earlier, trading under MTF was allowed only with cash and providing shares as collateral was not in the picture. However, the relaxation of allowing investors to create position under the margin trading by furnishing shares as security is given by SEBI.

  • If the margin trade agreement is not kept properly, the authorised stockbroker have the right to take action against the collaterals of Investors/Traders

  • When you avail MTF, you are supposed to maintain a minimum balance in your trading account all the time. If you fail to maintain the same, the you would be forced to sell some of your securities to maintain the balance to avoid the penalty

  • Trading in margin could be profitable and sometimes lead to losses as well

  • By availing MTF, an investor or trader can enhance their buying power up to 3.5X times

  • It improves the rate of return on the funds invested of a trader or investor

  • The securities which are lying in the Demat account can be used as collaterals

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Demat Trading Loan Against Securities MTF Trade and Carry IPO

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Useful Links :     BSE    NSE    SEBI    RBI    CDSL    NSDL

Registered Office

Bajaj Auto Limited Complex , Mumbai –Pune Road
Akurdi Pune 411035.
CIN: U67120PN2010PLC136026

Corporate Office

Bajaj Financial Securities Ltd,1st Floor,Mantri IT Park, Tower B,
Unit No 9, Viman Nagar, Pune, Maharashtra 411014
Telephone: 1800-833-8888 (Toll Free),
Monday to Friday – 08:30 AM to 06:30 PM
Saturday – 10:00 AM to 04:00 PM
Contact us at : connect@bajajfinserv.in

Registered Office

Bajaj Auto Limited Complex , Mumbai –Pune Road
Akurdi Pune 411035.
CIN: U67120PN2010PLC136026

Corporate Office

Bajaj Financial Securities Ltd,1st Floor,Mantri IT Park, Tower B,
Unit No 9, Viman Nagar, Pune, Maharashtra 411014
Telephone: 1800-833-8888 (Toll Free),
Monday to Friday – 08:30 AM to 06:30 PM
Saturday – 10:00 AM to 04:00 PM
Contact us at : connect@bajajfinserv.in

Attention Investors:

"Prevent Unauthorized transactions in your Trading/Demat Account. Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL/NSDL at the end of the day. Issued in the interest of investors.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
"We understand that certain investment advisors may be approaching members of the public including our clients, representing that they are our partners, or representing that their investment advice is based on our research. Please note that we have not engaged any third parties to render any investment advisory services on our behalf nor are we providing any stock recommendations/tips/research report/advisory. Persons making investments on the basis of such advice may lose all or a part of their investments along with the fee paid to such unscrupulous persons. Please be cautious about any phone call that you may receive from persons representing to be such investment advisors, or a part of research firm offering advice on securities. Do not make payments through e-mail links, WhatsApp or SMS. Please do not share your personal or financial information with any person without proper verification. Always trade through a registered broker."

“Investments in securities market are subject to market risk, read all the related documents carefully before investing.
We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services."

Bajaj Financial Securities Limited (“BFSL”) is a subsidiary of Bajaj Finance Limited and is a corporate trading and clearing member of Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd. (NSEIL), and also a Depository participant with National Securities Depository Ltd (“NSDL”) and Central Depository Services Ltd. (“CDSL”).

BFSL is engaged in the business of Stock Broking and as a Depository Participant. BFSL does not provide any advisory services to its clients. BFSL may share updates from time to time (through various electronic communication modes) which are sourced from public domain and the same are NOT to be construed as any advice or recommendation from BFSL. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold BFSL, its employees and associates responsible for any losses, damages of any type whatsoever.

Personal Loan, Fixed Deposit, EMI Card are provided by Bajaj Finance Limited. BFSL is only a distributor. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

Please note:

  1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.
  5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in Vernacular Language: BSE | NSE

If the client wishes to revoke /cancel the EDIS mandate placed by them, they can write on email to connect@bajajfinserv.in or call on the toll free number.

Advisory for Investors : NSE | BSE

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A. Register on SCORES portal B. Mandatory details for filling complaints on SCORES (i) Name, PAN, Address, Mobile Number, E-mail ID C. Benefits: (i) Effective Communication (ii) Speedy redressal of the grievances

SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403

Compliance officer: Bineet Jha, Tel: 1800 833 8888; Email: compliance_sec@bajajfinserv.in for DP related to Compliance_dp@bajajfinserv.in , for any investor grievances write to investcare@bajajfinserv.in

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