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Eligible Stocks for MTF_ SEBI Guidelines Explained

Under SEBI guidelines, not all stocks qualify for Margin Trading Facility (MTF). Only approved securities, generally from the NSE F&O segment or those meeting criteria like sufficient liquidity, market capitalization, and compliance standards, are eligible. Brokers publish lists of such stocks for investors. These rules are designed to reduce risk and ensure that only reliable, well-traded companies are offered under MTF, protecting both brokers and investors.

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Eligible Stocks for MTF_ SEBI Guidelines Explained

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  1. Read blog - https://navia.co.in/margin-trade-funding Eligible Stocks for MTF: SEBI Guidelines Explained

  2. Read blog - https://navia.co.in/margin-trade-funding What Is MTF? • Margin Trading Facility (MTF) lets you buy stocks by paying only a part of the total value. • The broker funds the rest, and you pay interest on the borrowed amount. • To protect investors, SEBI decides which stocks are eligible for MTF.

  3. Read blog - https://navia.co.in/margin-trade-funding SEBI’s Criteria for Eligible Stocks • Only liquid and stable stocks are allowed. • Stocks must be part of NSE’s F&O segment or approved lists. • Must have a minimum market capitalization and trading volume. • Penny stocks, illiquid, and highly volatile shares are not eligible.

  4. Read blog - https://navia.co.in/margin-trade-funding Why Restrictions? • To reduce risk for both investors and brokers. • Eligible stocks are less likely to face sudden crashes. • Ensures that borrowing is used for reliable, fundamentally strong companies.

  5. Read blog - https://navia.co.in/margin-trade-funding Key Takeaways for Traders • You can’t use MTF for all listed stocks—only SEBI-approved ones. • Check your broker’s MTF Eligible Stock List before trading. • Always factor in interest cost + risk when using leverage. • MTF is powerful but works best for liquid, stable companies.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/margin-trade-funding

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