We have been bringing to light the various benefits of the relaxation made by RBI for NRO accounts. For the benefit of those who do not know about it, click to read our article explaining the changes with benefits. To continue our effort in bringing the real benefits to NRO based investors, we open up yet another facility where a NRIs can utilize our Margin Trading Facility in a non-repatriate account.
What is this Margin Trading Facility or MTF?
Normally investors buy and sell stocks with their own money. However, some specific stocks may look attractive at some point in time either because of market conditions or some sector/company-specific news. If you don’t have the required funds to trade in a particular stock, you can opt for margin trading facility. Margin trading facility helps you to trade in stocks by borrowing money from your stockbroker.You are required to put in a certain percentage as the margin amount either by way of cash or stocks (just like a down payment in any loan product). This margin amount will vary from stock to stock. We will fund the rest of the transaction so that you are able to purchase this share. Thus you get the leverage to buy a certain stock even if you don’t have the funds in your trading account.
In the normal trading, segment Company allows you to purchase the shares and securities and hold it for a period of T+2+5 days under debit. If the debt is not cleared within T+2+5 days i.e. 7 working days from the day of trade, then your account will be blocked on the 7th day and shares bought for which the debit is due from you shall be liquidated by the Company. But under the Margin Trading Facility (MTF) segment, you can purchase the shares and hold it for a period beyond 7 days by meeting the required margin.
Click to know more about MTF trades.
What should you do to avail this facility?
Open an NRO account with Tradeplus. Request a call or call us at +91 7338822169 or at +1 914 3687760. You may also email us at email@example.com to help you open an account. In case you have an existing NRO account click here to download the MTF forms to activate the facility