Margin Trading Facility (MTF) in India — Up to 4× Buying Power
Buy more stocks than your capital allows. Hold for days or months with no overnight square-off. Pay interest only on the funded amount. SEBI-regulated via Shriram — 40+ years of trust.
What is Margin Trading Facility (MTF)?
Margin Trading Facility (MTF) — also called margin funding — lets you buy stocks by paying only a fraction of the total trade value. Your broker funds the remaining amount and charges daily interest on the funded portion.
MTF Full Form: Margin Trading Facility — a leverage-based stock buying mechanism offered by SEBI-registered brokers. Unlike intraday trading (which must be squared off same day), MTF positions can be held for an unlimited period as long as the required margin is maintained.
MTF vs Intraday
Intraday positions must be closed by market end (3:30 PM). MTF positions stay open beyond trading hours — for days, weeks, or months. No forced square-off unless margin falls short.
MTF vs Futures
Futures are derivative contracts with a fixed expiry. MTF gives you actual share ownership (credited to your demat), no expiry date, and the right to receive dividends, bonuses, and rights entitlements.
MTF vs Intraday vs Futures — Key Differences
Understanding how MTF compares with the two most common leverage instruments helps you choose the right tool for each trade idea.
Feature
MTF
Intraday
Futures
Holding Period
Multi-day / multi-month
Same day only
Until contract expiry
Instrument
Actual shares in demat
Actual shares (same day)
Derivative contract
Expiry
No expiry
Market close (3:30 PM)
Monthly / weekly
Margin Required
20–25% of stock value
3–10% (intraday MIS)
SPAN + Exposure margin
Interest / Cost
Daily interest on funded amt
None
MTM P&L daily
Corporate Benefits
Yes — dividend, bonus, rights
No (if sold same day)
No — derivative only
Forced Square-off
Only on margin shortfall
Mandatory at day end
Mandatory at expiry
How MTF Works — Step by Step
Follow these five steps to trade using Margin Trading Facility — from one-time activation to holding and exiting your leveraged position.
Activate MTF
One-time setup on your Shriram demat account — free, fully digital, done in under 5 minutes via OTP or e-signature.
Select Eligible Stock
Choose from 500+ NSE/BSE-approved MTF stocks. Large-cap, liquid securities with clearly defined margin requirements.
Place MTF Buy Order
Select "MTF" as product type. Pay only your required margin (e.g., 25%). Broker funds the remaining 75%.
Shares Pledged in Demat
Broker funds the remainder — shares are purchased and pledged in your demat via CDSL. You retain beneficial ownership.
Hold & Exit at Will
Hold for days, weeks, or months. Daily interest is charged on the funded amount only. Exit anytime you choose.
MTF Benefits — Why Use Leverage Trading?
MTF amplifies your buying power and capital efficiency without requiring you to sell existing investments or open derivative positions.
Buying Power
Buy up to 4× your available capital. Turn ₹1 lakh into ₹4 lakh of market exposure on approved stocks.
Holding Period
No overnight square-off — unlike intraday. Keep your position open for days, weeks, or months.
Actual Share Ownership
You own real shares — earn dividends, bonuses, and rights entitlements on your MTF-held position.
Capital Freed
Only 25% margin required. Keep remaining capital in other investments or as a liquidity reserve.
Additional benefits at a glance
Amplify buying power — invest up to 4× your available capital without liquidating other holdings.
No overnight square-off — unlike intraday, your MTF position stays open as long as margin is maintained.
Actual share ownership — earn dividends, bonuses, and rights on MTF-held shares.
Capital efficiency — free up cash for other investments while maintaining your MTF position.
MTF Interest Rate & Charges
MTF interest is charged daily on the funded (broker's) amount only — not on your own capital. Here is a full breakdown of all charges you will encounter when using MTF with Shriram.
Charge
Rate / Amount
Notes
MTF Interest Rate
12–18% per annum
Charged daily on funded (broker's) portion only — not on your own capital deployed
Minimum Margin
20–25% of stock value
Stock-specific, SEBI-mandated. Displayed before order placement
Pledge / Unpledge
₹30–₹50 per scrip
Charged by CDSL per pledge transaction; applicable when creating or releasing margin
Brokerage (Buy/Sell)
₹20 flat per order
Same as delivery brokerage — no separate MTF brokerage levy
Funding Limit
Up to 4× collateral
Subject to stock eligibility and your account's approved MTF limit
DP Charges on Sell
₹15.93 per scrip
CDSL charge on debit of shares at settlement; applies to MTF as in normal delivery
Log in to view your personalised MTF interest rate. High-volume clients can contact our team for preferential pricing.
MTF Eligible Stocks & Margin Requirements
Only NSE/BSE-approved stocks are eligible for MTF — typically large-cap, liquid securities. SEBI and the exchanges define eligibility; the list is updated periodically. Here is how the categories are structured.
Category
Exchange
Typical Haircut
Example Stocks
Nifty 50
NSE / BSE
15–25%
Reliance, HDFC Bank, Infosys, TCS, ICICI Bank
Nifty Next 50
NSE / BSE
20–30%
Adani Ports, LIC India, Zomato, IRFC, Bharat Electronics
Nifty Midcap 150
NSE / BSE
25–35%
IRCTC, Coforge, Mphasis, Voltas, Persistent Systems
F&O Eligible
NSE
Varies
Stocks per the SEBI-approved MTF scrip list — updated periodically
Log in to view the complete, live list of 500+ MTF-eligible stocks with current margin requirements and haircut percentages.
How to Activate MTF
MTF activation is a one-time process, free on our platform, and takes less than 5 minutes. Once activated, select "MTF" as the product type on any eligible stock order.
Log In to Your Account
Log in to your Shriram trading or demat account on the Antara app or web platform.
Go to Account Settings
Navigate to Account Settings → Margin Trading Facility (MTF) section.
Sign MTF Agreement
Read and sign the MTF Agreement digitally via OTP or Aadhaar e-signature. This is a one-time consent.
Activation Confirmed
Activation completes within 24–48 hours (often instant). You'll receive a confirmation on registered email/mobile.
Select MTF on Your Next Order
When placing a buy order on an eligible stock, select "MTF" as the product type to use leveraged funding.
MTF Risks — Margin Call, Liquidation & Shortfall
Leverage amplifies both gains and losses. Understand every risk before using MTF — particularly the margin call and forced liquidation scenarios.
Margin Call
If the pledged share value falls, broker may demand additional funds immediately. Example: ₹1L position drops 20% → margin call on ₹80K value.
Forced Liquidation
Failure to meet a margin call leads to broker selling your MTF position at market price — potentially locking in a loss at the worst time.
Margin Shortfall Penalty
If account balance + collateral falls below the required minimum, a penalty is charged per SEBI regulations until the shortfall is rectified.
Interest Accumulation
Daily interest compounds over time. At 15% p.a., a 3-month hold on a fully-funded position costs ~3.75% in interest alone — stock must outperform this.
⚠ Risk Disclaimer: Margin trading involves significant risk and may not be suitable for all investors. Leverage can amplify losses as well as gains. Please read all risk disclosures carefully before activating MTF. Past performance does not guarantee future results.
Why Choose Our MTF — Features at a Glance
Here is everything you get when you use MTF on the Shriram platform — built on 40+ years of trust, full SEBI compliance, and technology designed for the modern Indian investor.
Competitive Rates
12–15% p.a. MTF interest — among the lowest in the industry. Log in to see your personalised rate based on account history.
One-Time Digital Activation
MTF setup is free, takes under 5 minutes, and requires no physical forms. Sign digitally and start using leverage on the same day.
500+ MTF-Eligible Stocks
Wide selection of NSE/BSE-approved stocks across Nifty 50, Nifty Next 50, and Nifty Midcap 150 — updated as per SEBI notifications.
Instant Demat Pledging
Pledge existing Demat holdings as MTF collateral in seconds. No need to sell your investments to free up margin capital.
No Forced Overnight Exit
Unlike intraday, your MTF positions are not squared off at market close. Hold as long as the required margin is maintained.
CDSL-Regulated Pledge
All pledges are executed via CDSL — the shares never leave your demat. You retain beneficial ownership and all corporate benefits.
MTF SEBI Regulations & Compliance
Is MTF legal in India? Yes. MTF is fully legal, regulated by SEBI, and offered by registered stockbrokers on NSE and BSE. The framework is governed by SEBI Circular CIR/MRD/DP/54/2017 and subsequent amendments.
Governed by SEBI Circular CIR/MRD/DP/54/2017 and its subsequent amendments — defines eligible stocks, margin requirements, and broker obligations.
Only SEBI-registered stockbrokers with specific MTF approval can offer this facility. Shriram holds full NSE/BSE approval.
Eligible stocks are defined by NSE/BSE based on liquidity, market cap, and volatility criteria — updated periodically.
Shares are pledged in the client's own demat account — they are never transferred to the broker's account.
Daily mark-to-market applied; margin shortfalls must be rectified promptly or the broker is required to liquidate the position.
MTF is funded through the broker's own funds or NBFC credit — never from other clients' funds.
Frequently asked
questions.
What is MTF (Margin Trading Facility)?
MTF is a SEBI-regulated facility that lets you buy stocks by paying only a portion (margin) of the total trade value. Your broker funds the rest and charges daily interest on the funded amount. Unlike intraday, MTF allows multi-day or multi-month holding — you own the actual shares in your demat account.
What is the full form of MTF?
MTF stands for Margin Trading Facility. It is also called margin funding. The facility is regulated under SEBI Circular CIR/MRD/DP/54/2017 and is available through SEBI-registered stockbrokers on NSE and BSE.
How is MTF interest calculated?
MTF interest is charged only on the funded (broker's) portion, not your own capital. Formula: Daily Interest = (Funded Amount × Annual Rate) ÷ 365. At 15% p.a. on ₹1 lakh funded: ₹1,00,000 × 15% ÷ 365 = ₹41 per day. For a 30-day hold: ≈ ₹1,233 total interest.
What is the difference between MTF and intraday trading?
Intraday positions must be squared off by market close on the same day. MTF positions can be held overnight and for multiple days, weeks, or months — as long as the required margin is maintained. MTF is ideal for medium-term leveraged investing; intraday is for same-day speculation.
What stocks are eligible for MTF?
Only NSE/BSE-approved stocks are eligible — generally large-cap, liquid securities from Nifty 50, Nifty Next 50, and Nifty Midcap 150. SEBI and the exchanges define eligibility and update the list periodically. Log in to the Shriram platform to view the current live list of 500+ eligible stocks.
What is a margin call in MTF?
A margin call is triggered when the value of your pledged shares falls below the required minimum margin level. Your broker will ask you to add funds or additional collateral. If you don't respond in time, the broker may partially or fully liquidate your MTF position to recover the shortfall.
Can I pledge mutual funds as MTF collateral?
No — MTF pledging is restricted to SEBI/exchange-approved equity stocks. However, some brokers accept liquid ETFs or government securities as additional collateral at a haircut. Check with your Shriram Relationship Manager for the current approved collateral list.
What happens if I don't pay MTF interest?
MTF interest accrues daily and is automatically debited from your trading ledger. If the ledger balance turns negative and you don't top it up, the broker may liquidate sufficient MTF positions to recover the outstanding interest amount.
Is MTF the same as Loan Against Securities (LAS)?
They are similar but not identical. MTF is for buying new stocks with leverage and is exchange-regulated. LAS is an NBFC/bank product for borrowing against existing holdings. MTF has no physical loan agreement; LAS typically involves a separate loan account with a bank or NBFC.
Is MTF legal in India?
Yes. MTF is 100% legal and regulated by SEBI under Circular CIR/MRD/DP/54/2017. It is available through registered stockbrokers like Shriram Financial Services on NSE and BSE.
Ready to Trade with More Power?
Activate MTF on your Shriram account. 500+ eligible stocks, flat ₹20/order, SEBI-regulated pledging via CDSL.
Activate MTF and Trade with More Power
Free activation · 500+ eligible stocks · Flat ₹20/order · SEBI-regulated · 40+ years of trust.