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

You cannot use MTF to buy stocks if you fall into any of these categories:

  • DDPI not activated: MTF cannot be enabled if the Demat Debit and Pledge Instruction (DDPI) is not activated for your Zerodha account.
  • NSE - Equity segment not activated: MTF cannot be enabled if the NSE - Equity segment is deactivated in the Zerodha account. You can check the active segments for your Zerodha account on Kite.
  • 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.

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