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