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What is Margin Trading Facility (MTF)?

Margin Trading Facility (MTF) is a financial service provided by GEPL that enables clients to purchase stocks with a reduced initial capital requirement of 50%. The remaining funds necessary for the transaction can be borrowed from GEPL at an interest rate of 18% per annum, allowing clients to leverage their investments and potentially enhance their returns.

Say for instance

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Benefit from GEPL’s MTF facility
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Invest with 50% of funds in approved stocks
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For instance, with an account balance of ₹10,000
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GEPL gives 2x buying opportunity, i.e ₹10,000 x 2 = ₹20,000/-

Want to know more?

Margin Trading Facility (MTF): Do's & Don’ts

  • Don't forget to Pledge your purchased shares under MTF within the specified timeline, which is before 9:00 p.m. on the day of purchase
  • Trade smartly make an informed decision and choose MTF after conducting thorough research to ensure it aligns with your trading goals.
  • Pay Attention to Margin Shortfalls. In the event of a Margin Shortfall, the shares will be squared off within 4 trading days of the occurrence.
  • Remember, MTF is a loan, so interest payments are your responsibility. Don't ignore it.

Frequently Asked Questions

The "Margin required" is the initial payment necessary to purchase stocks through margin products. You have the option to pay the margin amount in either cash or by pledging your existing holdings (margin pledge).
An interest rate of 18% p.a. is applicable to the borrowed amount.
As long as you maintain the necessary margin in your account, you have the flexibility to hold your positions under MTF for an extended duration.
Interest is levied starting from the second day after placing an MTF trade until the outstanding amount is settled and/or your position is squared-off
Regarding shares purchased under MTF, the square-off process will occur in the following circumstances:
  • If there is a margin shortfall, the shares will be squared-off 4 trading days after the shortfall has taken place.
  • If the margin shortfall has not been met within the stipulated time frame.
  • If any statutory order is received against the client.
When initiating a request to Pledge or Un-pledge your shares, a charge of Rs 50/- plus GST per scrip is applicable.
As long as you can meet the required margin, you are allowed to enter new positions in Margin Trading.
Upon approval of your MTF request, you will receive the link from CDSL on the same day. Kindly monitor your Email/SMS for communications regarding the initiation of your MTF Pledge Request.
No. Margin Trading Facility is exclusively applicable ONLY for trading in equity shares.

MTF Disclaimer

If the client is currently utilizing the Margin Trading Facility (MTF) with other brokers, it is necessary for him to inform GEPL before availing of the MTF facility. Failure to provide this information will be considered as the client not availing of the MTF facility from any other financial intermediary.

attention-icon Attention Investors

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 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. 6) For Stock Broking transaction : Prevent unauthorised transactions in your account 7) 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  8) Update/ confirm your mobile number/email ID with us OR If you wish to change/ modify the current Mobile No. & E-mail ID, you are requested to provide MODIFICATION FORM duly filled in and signed OR If you do not want to provide Mobile No. & E-mail ID, you are requested to send DECLARATION FORM duly filled and signed.  9) Receive information of your transactions directly from exchange on your mobile/email at the end of the day...Issued in the interest of Investors 10) 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 remain in investor's account. 11)As per SEBI Circular MIRSD/ SE /Cir-19/2009 dated December 3, 2009 Client transaction account shall be required to do the actual settlement of funds and securities at least once in a Quarter or month.