MTF
Brokers' MTF hits record Rs 73,600 crore amid market highs, surging retail participation
Sebi's MTF framework mandates collateralising existing shares. Kotak Securities cautions investors on MTF investments amidst surging margin funding in anticipation of Modi 3.0 budget.
Investors to get direct payout of securities now
Sebi mandates direct transfer of securities to demat accounts by clearing corporations to protect clients' assets. A Balakrishnan from Geojit Financial Services praises the move for enhancing security, ease of margin trading, auto pledge for funded stocks, effective from October 14, improving the margin trading facility.
Brokers make trading costlier to discourage risky bets
Brokers in Mumbai are increasing trading costs ahead of the election results to mitigate risks. Measures include raising margins and seeking more collateral. The BSE advised caution in placing orders, with HDFC Securities and ICICI Securities implementing changes in margin requirements.
Explained: What are the advantages of marginal trading facility or MTF
Margin Trading Facility is a safe product allowing investors to purchase more stocks through leverage trading. It enables increased purchasing power, efficient capital allocation, higher ROI, and lower taxes for traders. MTF improves the possibility of profits as well as empowers traders to capitalize on promising market opportunities without having to liquidate their current holdings.
Equity markets to stay open today for special trading
Trading will occur in two sessions—first, from 9:15 am to 10:00 am, and second from 11:30 am to 12:30 pm. Traders will be allowed to place only delivery trades, with no intraday trading permitted.
This stock gave 129.9% returns last year; should you invest now? Know what analysts say
Angel One stands to gain from India’s booming broking industry, fueled by factors like rising income, increased awareness of financial assets, smartphone penetration, digitisation, regulatory protection for retail investors, and household savings’ financialisation. Should you buy?
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Get ready to pay more for margin trading
Brokers' borrowing costs from NBFCs for margin funding have surged to 10-11% from 8-8.50% earlier. Industry officials ET spoke to attributed the decision to increase loan rates to brokers to two reasons. One is that the Reserve Bank of India nudged NBFCs to do so amid concerns about elevated leverage in the stock market.
Brokers expect volatility spike, make margin trading costlier
In the first week of February, clients of these brokers must pay as much as 100% upfront margin for all new positions within the margin trading facility (MTF) in the cash segment in an attempt to discourage traders from taking excessive risks in the event of sharp swings.
Margin funding touches new high in step with D-Street
The margin trading funding (MTF) book for the stockbroking industry has increased to ₹54,537 crore as on January 16, compared with ₹29,500 crore in January last year and about ₹7,100 crore in February 2020, according to data compiled by ratings firm ICRA.
Groww posts massive jump in FY23 revenue, but expenses climb too
At Rs 1,294 crore, Groww’s total revenue shot up 252%, while profits increased to Rs 73 crore.
HDFC Securities launches discount brokerage platform Sky
"The app will provide access to a wide range of investment and trading offerings, including Indian stocks, ETFs, mutual funds, futures and options, currencies, commodities, IPOs, and global equities on a single Fintech platform," said the firm in a release. "What sets HDFC Sky apart is its cutting-edge technology," said Dhiraj Relli, managing director, HDFC Securities
HDFC Securities launches discount broking app HDFC SKY with flat pricing
HDFC SKY, has introduced a one-price slab of Rs 20 for both intraday and delivery across segments, MTF at 12%, coupled with zero account opening and maintenance charges for the first year
Margin trading facility is a double-edged sword that can magnify your gains, but also incur heavy losses
A margin call occurs when the value of the investor’s margin account drops below the account’s maintenance margin requirement.
Retail investors play momentum with record margin funding
The surge in risk-taking indicates that retail investors were euphoric, with the mid-cap and small-cap indices making new highs recently. The average margin funding in June was about ₹28,535 crore compared to ₹26,600 crore in May or about ₹26,000 crore last year.
Margin trading facility with 4X leverage: Maximisinge trading potential
Maximize your trading with a margin trading facility. Read more to have a thorough understanding of it
ICICI Securities tanks 6% on weak Q4 earnings; Motilal Oswal retains buy
Brokerage firm Motilal Oswal, however, maintained a buy rating on ICICI Securities with a price target of Rs 530, estimating a 15% upside. The target price is premised on 12X FY25E P/E of the company.
Sebi permits brokers to extend margin trading facility to equity ETFs
"Taking into account the emergence of ETFs as an investment product with various advantages such as transparency, diversification, lower cost, etc, it has been decided to allow units of equity exchange traded funds (equity ETFs)... as an eligible security for MTF as well as an eligible collateral under MTF," Sebi said in a circular.
Equity ETFs can now be used as collateral
The regulator said the initial margin payable by the client to the stock broker should be in the form of cash, cash equivalent or equity ETFs.
Angle One’s valuations attractive, stock can rally up to 20%, says ICICI Securities
“Angel One has reported consistent client additions, growth in a number of orders and cost discipline, which is reflected in PAT increasing from Rs134 crore in Q2FY22 to Rs 214 crore in Q2FY23,” ICICI Securities said.
Buy Angel One, target price Rs 1830: ICICI Securities
Angel One Ltd., incorporated in the year 1996, is a Small Cap company (having a market cap of Rs 10636.16 Crore) operating in Financial Services sector.
Add Motilal Oswal Financial Services, target price Rs 1035: HDFC Securities
Motilal Oswal Financial Services Ltd., incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 11401.08 Crore) operating in NBFC sector.
Buy ICICI Securities, target price Rs 820: IIFL
ICICI Securities Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 19268.76 Crore) operating in Financial Services sector.
Buy ICICI Securities, target price Rs 970: Motilal Oswal
ICICI Securities Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 25323.43 Crore) operating in Financial Services sector.
RBI maintains status quo on FPI investment limits in G-Secs, state development loans
The FPI investment limit in the debt instruments for October 2021 - March 2022 period is Rs 10,75,637 crore.
How Sebi's margin rule changed the equation for average traders?
From March 1, 2021, Sebi has hiked the upfront margin requirement to 50% from 25%, and this has impacted trading volumes. In the next two phases, Sebi plans to take this limit to 75% by the end of August and then 100% by September.
RBI holds rates steady: Here's the fine print from MPC's last meet in FY21
The repo rate or RBI's key lending rate was held at 4% while the reverse repo rate or its borrowing rate was left unchanged at 3.35%.
A welcome move to check misuse of client securities
Further, because of holding securities for different purposes in a single account, it was difficult for the regulator to monitor movement and usage of client securities.
Megatrend is clear, consolidation coming in broking business: Nitin Jain, Edelweiss Capital
“Margin trading would be only one-tenth of the total leverage that is there in the market.”
Margin trading: Sebi gives more borrowing options to brokers
Currently, a broker can use his own funds or borrow from banks and NBFCs for this purpose.
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