{"id":1403,"date":"2021-07-09T18:20:18","date_gmt":"2021-07-09T12:50:18","guid":{"rendered":"https:\/\/flattrade.in\/kosh\/?p=1403"},"modified":"2023-01-11T08:23:07","modified_gmt":"2023-01-11T02:53:07","slug":"mtf-pledge-process","status":"publish","type":"post","link":"https:\/\/flattrade.in\/kosh\/mtf-pledge-process\/","title":{"rendered":"Margin Trade Funding (MTF) Pledge Process:"},"content":{"rendered":"\t\t
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\u00a0<\/p>

Margin Trade funding having two type of pledge process:<\/b><\/span><\/p>

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1.\u00a0<\/span>Pledge towards purchase of shares \u2013 Mandatory process<\/span><\/p>

2.\u00a0<\/span>Margin Pledge towards collateral<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Pledge towards purchase of shares:<\/span><\/b><\/span><\/p><\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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On the date of purchase, after trading hours, respective trades are booked under Margin Trade Funding ledger of the client and raised the pledge request towards pledging of shares on the trade date itself after the trade process. \u00a0\u00a0On raising the pledge request in the depository system, CDSL will send an email and SMS to the client\u2019s registered email ID and mobile number.<\/span><\/p>

\u00a0<\/span><\/p>

On receipt of the SMS and Email, client is expected to confirm the purchase position pledge either on the purchase date or next working day or the date of settlement before the shares pay-out from the exchange. \u00a0Normally, pay-out of securities processed at the exchange level at around 1.00 p.m. and expected the clients to confirm the pledge request raised on purchase date before 1.00 p.m. on the settlement date. \u00a0<\/span><\/p>

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On completing the above process, client\u2019s purchase position is continued to be funded till the client wishes to retain the position in funding. \u00a0Client can make the payment of purchase value along with interest for the period of funding and get these shares are released into their demat account or sell the funded stocks and clear the debit.<\/span><\/p>

\u00a0<\/span><\/p>

If the client failing to confirm the pledge, then purchase trade is moved by the system from MTF funding position into the normal ledger and funding withdrawn. \u00a0Being the funding withdrawn, then the purchase value moved into the normal ledger. \u00a0<\/span><\/b>If there is adequate credit balance in the ledger, those shares are delivered into the demat account of the client. <\/span><\/p>

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If there is no adequate credit in the ledger of the client, then purchase shares are retained by the broker in the broker CUSA account. \u00a0Clients are expected to make the payment of the purchase value on or before 7 days from the date of purchase. \u00a0Failing which, the respective positions are sold in the <\/span>prevailing market<\/span><\/b>\u00a0price on the 7<\/span>th<\/span><\/sup>\u00a0day, and credit entry will be passed into the client\u2019s trading account as per SEBI regulations.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Margin pledge towards Collateral:<\/span><\/b><\/span><\/p><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Margin Trade Funding (MTF) is normally provided against the purchase of securities. \u00a0Towards this, clients must make the margin money in their MTF account either by way of Fund Transfer or by way of pledge of securities. \u00a0<\/span><\/p>

\u00a0<\/span><\/p>

Margin money by way of fund transfer into the normal ledger and email request to be raised to <\/span>support@flattrade.in<\/span><\/a>\u00a0for fund transfer into MTF Margin account. \u00a0Based on the request, margin amount moved from normal ledger into the MTF Margin account and confirmation provided and necessary limits provided in the trading terminal.<\/span><\/p>

\u00a0<\/span><\/p>

If the client wishes to provide existing shares held in their demat account as margin, can raise the email request by mentioning their client code, DP client ID and name of the shares and quantity to be pledged to <\/span>support@flattrade.in<\/span><\/a>. \u00a0Based on the request, DP team will raise the pledge request in the CDSL depository system. \u00a0\u00a0On raising the pledge request in the depository system, CDSL will send an email and SMS to the client\u2019s registered email ID and mobile number. On receipt of the SMS and Email, client is expected to confirm the pledge by providing OTP in the CDSL system.<\/span><\/p>

\u00a0<\/span><\/p>

Based on the confirmation, necessary pledge confirmed in the DP System and information sent to the trading ledger of the client and margin details are updated accordingly. \u00a0Next day onwards, the said securities are uploaded into the trading system for availing the margin and trade in MTF seamlessly.<\/span><\/p>

\u00a0<\/span><\/p>

To find the list of shares available for margin pledge, please check the list on <\/span>https:\/\/flattrade.in\/forms\/MTF%20APPROVED%20SCRIP%20LIST.pdf<\/span><\/a>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tClick to know more about MTF<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"Margin Trade funding having two type of pledge process: 1.\u00a0Pledge towards purchase of shares \u2013 Mandatory process 2.\u00a0Margin…","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"footnotes":""},"categories":[16],"tags":[53,38],"class_list":{"0":"post-1403","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-products","7":"tag-margin-trading-funding","8":"tag-mtf","9":"cs-entry","10":"cs-video-wrap"},"yoast_head":"\nMargin Trade Funding (MTF) Pledge Process: - Flattrade Kosh<\/title>\n<meta name=\"description\" content=\"MTF enables the investor to purchase shares and securities with the benefit of margin. 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