MTF Shares to be Auto-Pledged from Feb 24


We are excited to announce an important update on the securities payout process for Margin Trading Facility (MTF) positions. As of February 24, 2025, all Margin Trading Facility (MTF) purchases will be automatically pledged, meaning you no longer need to manually pledge shares bought using MTF; the system will automatically do it for you, in line with SEBI guidelines. Securities payouts will be directly credited to your active demat account by the Clearing Corporation and depositories (NSDL/CDSL).
 
Key Changes to MTF Securities Payout:
  1. Auto-Pledge of MTF Shares
  2. All shares bought in MTF from Monday, February 24, 2025 will now be auto-pledged. You will no longer need to confirm the pledge every time you buy the securities under MTF.
Key points about this change:
  1. No manual action required: You won't need to initiate a separate pledge process for MTF purchases.
  2. Direct pledge by exchange: The stock exchange will directly process the pledge based on information from your broker.
  3. Discontinuation of OTP-Based Authentication: OTP-based authorization for MTF pledge will no longer be required for MTF positions taken from 24th February,2025. Pledge will be processed directly by the Exchanges based on intimation from the stockbroker.
  4. Pledge Charges: There will be no change in Pledge Charges.

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