With MTF (Margin Trading Facility), we fund part of your purchase, but only while the stock is eligible for funding. If the stock stops being eligible, we can't fund it anymore, and you'll need to pay the full amount.

Why does a stock stop being eligible?

There are two main reasons:

1. Its VaR margin changes. The Exchange sets a VaR margin for every stock and updates it often to manage risk. If a stock's VaR margin reaches 100%, it can't be funded, so you have to pay the full value.
2. Its category changes. The Exchange may move a stock to a different category, for example from EQ to BE, or out of Group 1. Stocks in some categories can't be funded under MTF.

When do these changes happen?

What do you need to do?

Pay the full amount for the affected stock within 3 working days of being told about the change.

What happens after that?

• If your account has enough funds or margin, the stock moves to your demat account as a regular holding that you fully own.
• If your account doesn't have enough funds, the stock will be sold to cover what you owe.

Tip: Check your Daily MTF Margin Report regularly so these changes don't catch you off guard.