MTF Terms & Conditions

Introduction

The Margin Trading Facility (MTF) shall be offered to clients subject to the following terms and conditions laid down by Shoonya Securities Limited and in accordance with applicable regulations of the stock exchanges and regulatory authorities.

1. Margin Trading Facility
Margin Trading Facility (MTF) enables clients to purchase securities by partly using their own funds and the remaining amount through funding provided by Shoonya.

Under this facility, clients may avail funding of up to 2 times their available cash balance, subject to Shoonya’s internal risk management policy and regulatory guidelines, for purchasing eligible securities approved under MTF. The funding amount available under MTF may be revised from time to time at the sole discretion of Shoonya, subject to applicable risk management policies and not exceeding the limits prescribed by the Exchange. To secure MTF exposure, clients shall provide margin in the form of cash only in Shoonya.

2. Eligible Securities

MTF shall be available only for Group I securities as permitted by the Exchange.

Applicable Margin Requirements:

• Group I (F&O Stocks):
  • VaR + 3 × ELM or 50%, whichever is higher
• Group I (Non-F&O Stocks & ETFs):
  • VaR + 5 × ELM or 50%, whichever is higher

Shoonya reserves the right to modify the list of eligible securities and exposure limits at its sole discretion.

3. Margin Requirement

Shoonya reserves the right to levy margins higher than those prescribed by the Exchange, in accordance with its risk management policy.

Any margin shortfall may attract penalties as per applicable Exchange regulations.

Additionally, clients are required to maintain margins as prescribed by SEBI/Exchanges or higher margins as determined by Shoonya at all times.

Shoonya reserves the right to revise margin requirements at any time without prior notice. Such decisions shall be final and binding on the Client, and Shoonya shall not be required to provide any reasons for such revisions.

4. Exposure Limits

Exposure under the MTF facility shall be subject to limits determined by Shoonya from time to time also mention in MTF risk policy accordingly. Users must read the risk policy before availing MTF in Shoonya.

No, Client shall be provided exposure beyond the limits defined under Shoonya’s internal risk management framework and applicable Exchange norms.

5. Mandatory DDPI

Clients intending to avail the MTF facility must mandatorily subscribe to Demat Debit and Pledge Instruction (DDPI) in favour of Shoonya.

6. Change in Eligibility of Securities

MTF shall be available only for securities categorized under Group I stocks, as permitted by the Stock Exchange.

If any funded stock moves out of Group I:

• The Client must liquidate or convert the position within 6 days from the date of reclassification.
• If the Client fails to do so, Shoonya reserves the right to liquidate the position after the 6th day.
• Shoonya squares off positions one day before the ex-date for specific corporate actions like mergers. This doesn't apply to bonuses, stock splits, dividends, and rights issues.
• Shoonya reserves the right to restrict or suspend fresh MTF funding in securities that are subject to upcoming corporate actions, including merger and demerger events, based on its internal risk assessment.

7. Margin Shortfall and Square-Off

Any notification in the Mobile App, Web login, EXE version, or other communication channels specifying the margin shortfall amount shall be treated as a margin call notice.

The Client shall deposit/pay the margin shortfall amount immediately upon receipt of such notification.

If the Client fails to maintain the required margin:

• Shoonya reserves the right to square off the Client’s position at prevailing market prices.
• Shares associated with the position may be invoked or liquidated to recover dues.
• All statutory charges, transaction charges, and other costs shall be borne by the Client.

8. Margin Release

Upon square-off of the position (whether by the Client or by Shoonya), margins shall be released after settlement as per Exchange/Clearing Corporation settlement timelines.

9. Validity of MTF Position / Maximum Holding Period

Under Shoonya’s Margin Trading Facility (MTF), positions may be held for a maximum period of 365 days, subject to the Client maintaining the required margin at all times.

The validity of an MTF position shall be reviewed and determined by Shoonya from time to time.

In the event of any margin shortfall or overdue amounts, Shoonya reserves the right to square off the positions in accordance with applicable scrip-wise guidelines and internal risk management policies.

Clients are required to close or convert their MTF positions within the permitted timeline by either:

• Paying the funded amount and taking delivery of the shares; or
• Squaring off the position.

Any position remaining beyond the permitted period may be squared off by Shoonya at prevailing market prices on a best-effort basis.

Shoonya shall not be liable for any losses arising from such square-off.

10. Margin Trading Facility (MTF) – Tariff Sheet

*Interest charges shall be applicable from the date of funds pay-in to the Exchange until the date of funds payout received after square-off or closure of the MTF position.

11. Mark-to-Market (MTM) Monitoring

(Client-Level – Combined Across Positions)

In case 80% of the available margin is eroded at the Client level across all products (including MTF), it will trigger an immediate square-off of all open positions.

This includes MTF positions and other holdings and trading positions, in accordance with the applicable Risk Management Policy

Such square-off will be executed without any further notice or margin call.

12. Client Responsibility for Margin Calls

Upon margin falling to the level defined in the MTF risk policy, Shoonya shall be entitled to immediately, and without any reference or intimation to the Client, liquidate all or any of the securities and forthwith transfer or appropriate proceeds towards repayment of the MTF facility.

The Client shall be solely responsible for any loss, damages, costs, etc., arising therefrom.

Failure to fulfil margin requirements may result in:

• Conversion of MTF positions to delivery (if funds are available) as per Risk management policy.

13. Pay-in / Payout of Securities and Consequences

In case there is a shortfall in receipt of securities against the buy position of the Client, such shortfall shall be dealt with in the following manner:

If there is a payout shortage on the settlement day for bought MTF positions, the same would be converted to normal delivery in the Client’s account.

The shares thus received on the Settlement Date or under auction payout would be delivered to the Client’s demat account upon full payment of the position; otherwise, they would be held in the CUSPA account.

The Client must make payment for the unpaid part within the timelines prescribed under regulatory norms; failing which, such shares shall be squared off by the end of such timeline.

Any close-out credit received shall be credited to the Client account.

Under both the above scenarios, Shoonya shall first recover:

• Funded amount
• Applicable charges

Only the remaining balance shall be credited to the Client ledger.

14. Event of Default

Events of default shall include, but are not limited to:

• Non-payment of MTF dues or interest
• Failure to maintain required margin
• Non-compliance with risk policies
• Death, insolvency, or incapacity of the Client
• Any other event deemed as default by Shoonya

Consequences:

• Immediate recall of MTF dues
• Liquidation/square-off of securities without notice
• Recovery of shortfall from the Client
• No liability on Shoonya for losses arising from such actions

15. Undertakings

To satisfy any obligation or dues under MTF, funds from the Client’s normal ledger may be moved to the MTF ledger by passing a journal voucher (JV).

Clients shall remain fully responsible for clearing all dues payable to Shoonya, including:

• Funded amount
• Interest
• Taxes
• Statutory charges

Upon square-off:

Sale proceeds shall first be adjusted towards:

• Funded amount
• Applicable taxes
• Charges
• Upfront margin

Only the remaining balance, if any, will be credited to the Client account.

Margin Shortfall Penalty

Clients shall be responsible for any penalties arising due to margin shortfall.

Exchange Reporting

The Client understands that Shoonya shall report Client MTF positions, collateral details, and other required information to Stock Exchanges on a daily basis as per regulatory requirements.

Modification of Terms

The Client understands that Shoonya reserves the right to modify any terms related to the Margin Trading Facility.

Any regulatory or operational changes shall apply upon due intimation to the Client via display on the website and/or app.

It shall be the responsibility of the Client to review such communications.

16. Miscellaneous

(a) The Client agrees to indemnify and hold harmless Shoonya, its affiliates, directors, employees, and agents from and against any liability, loss, or costs arising from breach of these Terms and Conditions or applicable law by the Client.

Shoonya’s liability, if any, shall be limited to the maximum liability prescribed under applicable law or Exchange directions.

(b) Shoonya reserves the right to deny the Margin Trading Facility to any Client without assigning any reason.
If any breach or fraud is detected, the Client shall be liable to compensate Shoonya for all financial losses, including legal and technical costs.

The Client may also be subject to legal action.

(c) Shoonya may withdraw the MTF facility by providing up to 30 days’ notice to Clients.

Clients must settle all positions and clear outstanding dues within the specified period.

(d) The Client agrees that he/she shall be liable for any loss (including opportunity or notional loss), damages, fines, penalties, charges, costs, or expenses arising due to interruption, malfunction, error, non-availability, or technical glitch of any nature in the trading platform.

The Client shall not have any claim or complaint against Shoonya arising from such incidents.

Mode of Communication

The Client acknowledges that communications including order confirmations, margin calls, liquidation notices, positions, exposure statements, and policy updates shall be deemed valid if delivered electronically.

Communication may be transmitted via:

• Registered email
• SMS
• Shoonya website
• Mobile application

Electronic delivery shall constitute valid legal notice.

Regulatory Changes

The Client understands that any changes introduced by regulatory authorities regarding the functioning of MTF shall automatically apply to the Client’s positions.

17. Dispute Resolution

Any dispute arising between the Client and Shoonya in relation to MTF shall be addressed through:

• Investor Grievance Redressal Mechanism
• Online Dispute Resolution (ODR) as per SEBI and Stock Exchange norms.