Mirae Asset Sharekhan MTF: Margin Trading Facility, Eligibility & Charges Guide

Mirae Asset Sharekhan MTF, or Margin Trading Facility, allows eligible investors to purchase supported securities by paying only a portion of the total transaction value while the remaining amount is funded under the applicable margin facility. This arrangement enables traders to increase their purchasing power, but it also introduces additional financial obligations, funding costs, and investment risks. Investors should carefully understand the facility before using margin funding.

Under the Margin Trading Facility, investors contribute the required margin amount, while the broker funds the remaining eligible portion of the transaction. The purchased securities generally remain under the margin arrangement until the outstanding funded amount is repaid. The funding limit depends on regulatory guidelines, the selected security, available margin, and the broker's current policies.

Eligibility for Mirae Asset Sharekhan MTF depends on factors such as account status, trading segment activation, regulatory compliance, available margin, and the list of approved securities. Not every listed stock qualifies for margin funding, and the eligible securities list may change over time. Investors should verify the latest approved securities before placing a margin-funded trade.

The MTF process generally begins when an eligible customer selects a supported security and chooses the margin trading option while placing an order. Before confirming the transaction, the platform typically displays the investor's margin contribution, funded amount, applicable charges, and estimated interest. Customers should review these details carefully before proceeding.

Mirae Asset Sharekhan MTF charges include brokerage, applicable interest or funding charges, exchange transaction charges, GST, Securities Transaction Tax (STT), stamp duty, SEBI-related fees, and other statutory costs where applicable. Since these expenses directly affect the total cost of trading, investors should calculate the complete cost before using the facility.

Margin trading increases both potential profits and potential losses because borrowed funds are involved. If the market value of funded securities declines significantly, investors may be required to provide additional margin or eligible collateral to maintain the required funding level. Failure to maintain sufficient margin may result in action according to the applicable Margin Trading Facility terms.

Investors should avoid using MTF without understanding leverage and its associated risks. Although borrowing funds can increase market exposure, it also increases financial risk during periods of market volatility. Margin trading is generally more suitable for investors who understand leverage, risk management, and the impact of funding costs on investment returns.

Customers should also monitor their funded positions regularly. Changes in market prices, regulatory requirements, or eligible margin values may affect the available funding and margin obligations. Reviewing positions frequently can help investors respond promptly to changing market conditions and maintain adequate margin levels.

Overall, Mirae Asset Sharekhan MTF provides eligible investors with access to margin funding for supported securities. Before using the facility, customers should review the latest eligibility criteria, approved securities, applicable interest rates, funding charges, and associated risks to make informed trading decisions.