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Why is Margin Trading Facility (MTF) not allowed for some clients?

MTF is currently available only for beta users, and we will soon open it up for others. Visit MTF updates to keep track of all the recent updates.

Clients are not allowed to buy stocks using Margin Trading Facility (MTF) for the following reasons:

  • DDPI not activated: MTF cannot be enabled if the Demat Debit and Pledge Instruction (DDPI) is not activated for the Zerodha account.
  • NSE - Equity segment not activated: MTF cannot be enabled if the NSE - Equity segment is deactivated in the Zerodha account. To learn more, visit Check active segments in the Zerodha account How to check the active segments in the Zerodha account?
  • NRI account holder: NRI account holders are prohibited from trading using MTF.
  • Custodian-settled clients: Custodian-settled clients are not allowed to buy stocks using MTF.
  • Minors: As per regulations, minors are not allowed to buy shares. However, they can sell shares from their holdings.