What is the new Cash Margin process for Margin Trading?

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When you purchase stocks under the MTF Product, you would pledge these stocks through the MTF Pledge process. Once accepted, these shares will be marked as MTF pledged. This procedure applied to clients who provides margins using both cash and stock collaterals. 

Now, for clients who provide cash margins, the cash will be used as pay-in to the exchange. Hence, the margins required for maintaining the MTF position will not be there. To achieve this, you must separate the funded stocks(MTF holdings) from the margin. In order to show that you have collected the required margin and report it to the exchange, you need to convert a portion of your MTF holdings into Margin Pledge and Repledge (MPR) to the extend of margin requirement for the MTF holdings.

To do this transition: 

• A MPR request is send through your depository. This will be in addition to the MTF request which you are doing at present.
• You will need to accept the request through an OTP (One-Time Password) process for both MPR and MTF.

Once you accept, your share will be converted from MTF funded stocks to MPR and will be reflected accordingly in your Portfolio and Holdings in Geojit Trading Platforms.

Note:
In case you fail to accept the Margin pledge (OTP for MPR), you will be charged interest on the margin portion which is funded by Geojit.