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

Margin Trading Facility

Time and tide wait for no man. Nor does the stock market.

With our Margin Trading Facility (MTF), never miss a good market opportunity due to a cash shortage.

MTF lets you trade even with limited funds. It lets you buy select stocks with only a certain percentage (margin) of the trade value. The rest can be borrowed from us.

What does margin trading mean?

Normally you would use your own funds to buy stocks. However, some stocks may suddenly look attractive because of favourable market conditions or some sector/company specific news. In such cases, instead of letting the opportunity go due to shortage of funds, you can use Margin Trading Facility instead.

With MTF, you can pay a small percentage of the trade value (just like a down payment for a loan) and borrow the balance from us. This margin amount may vary from stock to stock.

So to sum it up, with Margin Trading Facility, you get leverage to buy certain stocks even if you don’t have the entire amount in your trading account.

Open account to use MTF

How does Margin Trading Facility work?

Use MTF for select stocks in the cash segment
Keep the required percentage of the total transaction amount as margin
Use your stocks* instead of cash as margin, if required
Get the rest of the amount from us

*As per the new SEBI guidelines, effective 1st September 2020, stocks would need to be pledged in favour of the broker to use them as margin. The new pledging process is simple, safe and involves a secure OTP. You can start the pledging process on any of our online trading platforms.

How to activate Margin Trading Facility?

On the website:

Log into www.kotaksecurities.com
Go to the ‘New Products’ menu and click on ‘Margin Trading’
Select the option ‘Manually allocate to Margin Trading’ if you want to use MTF only for certain orders / Select the option ‘Automatically allocate to Margin Trading’ if you want to use MTF for all future orders
Click on ‘Accept’

Activate MTF

On KEAT Pro X:

Log into KEAT Pro X
Go to ‘Web Links’ and click on ‘Product Services’
Click on ‘Margin Trading Disclaimer’
Select the option ‘Manually allocate to Margin Trading’ if you want to use MTF only for certain orders / Select the option ‘Automatically allocate to Margin Trading’ if you want to use MTF for all future orders
Click on ‘Accept Disclaimer’

On Kotak Stock Trader mobile app:

Log into Kotak Stock Trader and go to ‘More’
Head to the ‘settings’ option, click on ‘Disclaimers’ & Select ‘T&C margin trading’ under dropdown
Select the option ‘Manually allocate to Margin Trading’ if you want to use MTF only for certain orders / Select the option ‘Automatically allocate to Margin Trading’ if you want to use MTF for all future orders
Click on ‘Accept Disclaimer’

Do note:

The Margin Trading Facility is available only once you accept the Margin Trading Facility disclaimer.
No minimum margin is required to activate Margin Trading Facility.
You can use Margin Trading Facility for After Market Orders as well. This facility is available across KEAT, KST, and website platforms.

+ Expand All Frequently Asked Questions (FAQs)

Q What is Margin Trading Facility?

A

With Margin Trading Facility, you can buy certain stocks by paying just the margin amount and not the total value. That is, you can carry the position by just maintaining minimum margin and borrowing the rest from us.
Q Which types of margin are allowed?

A

You can use cash, cash equivalent (bank guarantee/bank fixed deposits) or pledged shares as margin.
Q What amount of margin is required while buying stocks?

A

The required margin may vary for different stocks. Click here to know the required margin in select stocks. .
Q Which segments is Margin Trading Facility available for?

A

Margin Trading Facility is available only for selective scrips in the Cash segment.
Q How do I get details of my Margin Trading Facility transactions?

A

You will receive communications regarding confirmation of orders/trades, margin calls, decision to liquidate the position/security on your registered email/mobile number.
Q What if I have transferred margin to my account but have not traded?

A

Margin Trading Facility accounts in which there have been no transactions for 90 days shall be settled immediately.
Q How can I carry my funded positions?

A

You can carry your funded positions by maintaining the minimum required margin with us & till the interest is served Also, w.e.f. 1^st September 2020, you need to pledge your Margin trading positions within T+2 days else your positions may get liquidated.
Q What if I want to exit the Margin Trading positions I’ve taken?

A

You can exit Margin Trading positions by paying the total debit amount/shortfall or by selling your positions.
Q How will interest be charged in case I have created position in MTF?

A

Interest will be charged from T+2 day on total debit position including Debit under normal Plus debit under Margin trading Position. In case you have sufficient credit under normal segment to cover margin trading debit, no interest will be charged to you.
Q What is the procedure for pledging open position in MTF?

A

a. In case of MTF trades, Kotak Securities will initiate a pledge request for net long position at the EOD.

b. The customer will receive communication from NSDL and will have to follow the steps.

c. Once the customer shares the OTP, and on successful verification the MTF shares will be pledged in favour of KS MTF account.

For your trades in Margin Trading Facility (MTF), you are requested to follow the due process and confirm the pledge within an appropriate time frame (T+2 days) of purchase of these securities. In case you are unable to complete the pledge, such positions might have to be liquidated by us.

Have more questions? Click here to find answers.

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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.

Clients are required to keep all their account related information up-to-date including details like email id, mobile number, address, bank details, demat details, income details etc. which will help the client to timely receive any information and to avail the various facilities relating to the Trading and Demat account. To update the details, client may get in touch with our designated customer service desk or approach the branch for assistance.

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

Clients are hereby cautioned not to rely on unsolicited stock tips / investment advice circulated through bulk SMS, websites and social media platforms. Kindly exercise appropriate due diligence before dealing in the securities market.

Requirement of obtaining consent through OTP has been waived for off market transfer reason code “Implementation of Government / Regulatory Direction / Orders” Consent through OTP would continue to be required for all other reasons for any off-market transfers. Refer NSDL circular.

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.

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