End-of-day authorisation: With the new regulation, traders will no longer need to manually authorise MTF requests at EOD, simplifying the trading process and improving efficiency
Pledging process: According to SEBI guidelines, authorising MTF positions on the CDSL platform is mandatory. While the new regulation eliminates the need for manual EOD authorisation, MTF trades will still be auto-pledged with CDSL
Charges for pledging and unpledging: CDSL charges a one-time fee of ₹20 (+tax) for the pledging process. When exiting an MTF position and unpledging the shares, there is an additional charge of ₹20 (+tax). Despite the regulatory changes, these fees will remain unchanged
Overall, the new regulation aims to enhance the trading experience for MTF users while maintaining the necessary safeguards for brokers and investors alike.
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RIGHTS & OBLIGATIONS OF STOCK BROKERS & CLIENTS FOR MARGIN TRADING FACILITY (MTF) - NSE & BSE