MTF
12.Nov.2024
Rollback of direct client payout implementation
The implementation of securities payout directly to clients’ demat accounts stands postponed and the go-live date for the same will be intimated subsequently. Accordingly, securities payout will be released to the pool account of clearing members w.e.f. auction settlement number 2024213 and normal settlement number 2024214, until further notice.
07.Nov.2024
The recent updates from SEBI regarding the direct payout of securities to clients’ demat accounts and changes related to Margin Trading Facility (MTF). These updates, aimed at enhancing operational efficiency and risk reduction, will take effect from 11 November 2024.
Please take note of the key points and modifications :
Direct Payout of Securities & Selling of Securities on T+1
Exchanges/Clearing Corporations will credit securities directly to your demat account on the settlement date.
You can sell shares on T+1 in normal settlement scenarios. However, it will not be possible to sell shares bought on the previous day on settlement holidays. Direct payout of securities by the Exchanges/Clearing Corporations will begin on Settlement Day, 11 November 2024 (for Trade Date 8 November 2024).
To avoid the transfer of shares to the Client Unpaid Securities Pledge Account (CUSPA), please ensure you maintain a clear credit by 7 AM on the Settlement Day. Failure to do so may result in depository charges.
Exchanges will exclusively conduct Sell Shortage Auctions for securities which fail to fulfil sell obligations.
Selling on settlement day (T+1): On settlement day, you are advised to assess the risks associated with selling of shares to avoid any shortfall in securities pay-in, which may lead to short delivery auction.
Payouts to NRI accounts will continue under the current process until January 13, 2025. After this date, validated demat account details for NRI clients will also be shared with the Clearing Corporations (CCs) to enable the direct payout of securities
Margin Trading Facility (MTF) Updates
Discontinuation of OTP-based Authentication: From 11 November 2024, you are no longer required to confirm MTF pledges through OTP-based authorizations. The Exchanges will handle this process based on the stockbroker's intimation.
Other updates
From 10 October 2024, 100% of the sale proceeds have been released to your buying power once the early pay-in of securities is reported and accepted by Depositories. Previously, only 80% of the proceeds were made available (Not applicable for NRI accounts).
04.Sep.2024
Change in margin requirements for MTF positions
Considering the current market conditions, we are reducing the minimum margin requirements for certain stocks in Margin Trading Facility (MTF) from 30% to 25%. The objective of this reduction in margin is to enhance your investment opportunities. The change in margin requirements will be effective from 04th September 2024.
19.Jul.2024
Change in margin requirements for MTF positions
Considering the likely market volatility, as a prudent risk management measure, we will be increasing the minimum margin requirements for Margin Trading Facility (MTF) from the existing 25% to 30% for all MTF stocks. The change in margin requirements will be effective from 19th July 2024. We are sure that you will appreciate this decision as it is an effort to protect your portfolio from the risk of excess leverage during high market volatility.
12.Feb.2024
Important notice regarding additional margin requirements for MTF positions
In light of the current market volatility, as a prudent risk management measure, we will be increasing the margin requirements of our Margin Trading Funding (MTF) with effect from Monday, 12th February 2024. The additional margin is in the range of 3.5% to 5% of trade value.
We are certain that you will appreciate this decision as it is an effort to protect your portfolio from the risk of excess leverage during high market volatility. Please note that the new margin structure will have an impact on the buying power and margin shortage of all open positions of other products (FAO/COM/CD) as well, as our Order Management System takes into account the combined collateral value across all products at client level.
Our new margin structure is given below:
With the above changes please see an illustration below
Please note that these adjustments will apply to both your existing positions and any new purchases you make. Request you to plan your trades accordingly.
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