New guidelines w.e.f. 1st September, 2020, click here

Margin Trading Facility in India

Normally investors buy and sell stocks with their own money. However, some specific stocks may look attractive at some point in time either because of market conditions or some sector/company specific news. If you don’t have the required funds to trade in a particular stock, you can opt for margin trading facility. Margin trading facility helps you to trade in stocks by borrowing money from your stock broker.

You are required to put in certain percentage as the margin amount (just like a down payment in any loan product). This margin amount will vary from stock to stock. We will fund the rest of the transaction so that you are able to purchase this share. Thus you get the leverage to buy a certain stock even if you don’t have the funds in your trading account.

How does it work?

To activate Margin Trading Facility,
i. From Website : Login to www.KotakSecurities.com > Go to New Products Menu > Click on Margin Trading > Select Option and accept Disclaimer.

ii. From KEAT : Login to KEAT Pro X > Go to Web Links > Click on Product Services > Click on Margin Trading Disclaimer > Select Option and accept Disclaimer.

iii. From KST : Login to KST > Go to Menu > Help > Click on T&C Margin Trading > Select Option and accept Disclaimer.
The margin trading facility is made available to you once you accept the Margin Trading Facility disclaimer with us.
No Minimum Margin required to activate Margin Trading facility.
You can use Margin Trading Facility for After Market Orders as well. The facility is available across all platforms: KEAT, KST, website.

+ Expand All Frequently Asked Questions (FAQs)

Q What is Margin Trading Facility?

A
A broker allows customers to buy stocks just by paying margin (for given list of stocks) and not the total value of stocks is known as Margin Trading Facility. Customer can carry the position just by maintaining minimum margin.
Q What type of margin is allowed?

A
Brokers may allow customers to pay margin in the form of approved list of stocks post hair cut or cash or cash equivalent.
Q What is the amount of margin that I need to pay during buying stocks?

A
Required margin may vary for different stocks. For details please get in touch with our customer care team.
Q Available segment for Margin Trading Facility?

A
Margin Trading Facility is available only under cash segment for selective scrips.
Q How do I get details of my Margin Trading Facility transaction?

A
You will get all communication regarding confirmation of orders/trades, margin calls, decision to liquidate the position / security on your registered email/ Mobile Number.
Q What if I transferred margin to my account and not trading?

A
Margin Trading Facility accounts where there was no transactions for 90 days shall be settled immediately.
Q How can I carry my funded position?

A
You can carry your funded position by maintaining minimum required margin the with brokers.
Q What if I have existing Margin Trading Facility position and now I want to exit from it?

A
You can exit from margin funding position by paying total debit amount or by selling your position.

Have more questions? Click here to find answers.

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No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Attention Investors Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSE/INSP/27436, BSE - 20140901-21

Kindly note that as per NSE circulars nos: NSE/INVG/36333 dated November 17, 2017, NSE/INVG/37765 dated May 15.2018 and BSE circular nos: 20171117-18 dated November 17, 2017, 20180515-39 dated May 15.2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. In case of any queries, request you to kindly get in touch with Customer Service on 18002099191/9292

Kotak securities Ltd. having composite licence no.CA0268 is a Corporate Agent of Kotak Mahindra Life Insurance Company Limited and Kotak Mahindra General Insurance Company Limited. We have taken reasonable measures to protect security and confidentiality of the Customer information.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.
The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Please do not share your online trading password with anyone as this could weaken the security of your account and lead to unauthorized trades or losses. This cautionary note is as per Exchange circular dated 15th May, 2020.

Note: NSDL and CDSL have mapped Unique Client Codes (UCC) to demat accounts based on PAN, refer NSDL and CDSL circulars. Format for linking/delinking the UCC: NSDL: link | CDSL: link.

Investor Awareness regarding the revised guidelines on margin collection:-
Attention Investors :
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020, notice no. 20200731-7 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020, notice no. 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
.......... Issued in the interest of Investors

Covid-19 impact to clients:-
1. Applicable to clients on whose email id contract notes and other statements get bounced or who have opted for Physical contract notes/ other statements or Digital and Physical contract notes/ other statements :Due to the nationwide lockdown, we are unable send physical contract notes and other statements. To view them, log into www.kotaksecurities.com
2. Kindly update your email id with us to receive contract notes/various statements electronically to avoid any further inconvenience.
3. We are unable to issue the running account settlement payouts through cheque due to the lockdown. We request you to update your Bank account details to facilitate direct transfer to your linked bank account. You may approach our designated customer service desk or your branch to know the Bank details updation procedure.
4. Exchange advisory: Investors are advised to exercise caution while taking investment decisions in these unpredictable times. Clients are also encouraged to keep track of the underlying physical as well as international commodity markets. Clients are advised to undertake transactions after understanding the nature of the contractual relationship into which they are entering and the extent of its exposure to risk. Clients are further advised to follow sound risk management practices and not to be carried away by unfounded rumors, tips etc.

Filling complaints on SCORES- Easy & Quick
a. Register on SCORES portal | b. Mandatory details for filling complaints on SCORES i. Name, PAN, Address, Mobile Number, E-mail ID | c. Benefits: i. Effective Communication ii. Speedy redressal of the grievances

Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. Telephone No.: +22 43360000, Fax No.: +22 67132430.
Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 42856825.

CIN: U99999MH1994PLC134051. SEBI Registration No: INZ000200137(Member of NSE, BSE, MSE, MCX & NCDEX), AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586.

NSDL/CDSL: IN-DP-NSDL-23-97

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Margin Trading Facility in India

How does it work?

+ Expand AllFrequently Asked Questions (FAQs)

+ Expand All Frequently Asked Questions (FAQs)