Zerodha MTF e-margin

MTF vs e-margin difference

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MTF (Margin Trading Facility) is the SEBI-regulated framework for broker-extended credit on equity delivery. e-margin is a historical / alternative leverage product offered by some brokers; SEBI’s framework has largely standardised these under MTF.

Comparison

AspectMTFe-margin
RegulatorSEBIPre-SEBI MTF framework
SettlementT+1 with pledgeT+1 with pledge
Interest10-14% per annumWas similar
Eligible stocksSEBI-approved listBroker-defined
Current relevanceActiveLargely subsumed into MTF

Post the SEBI MTF framework formalisation, e-margin has been folded into MTF at most brokers.

For Zerodha

Zerodha’s leverage products:

  • MTF (limited offering; see Zerodha MTF ).
  • MIS (intraday only; no carry).
  • CO / BO (intraday with stop-loss).

No separate “e-margin” product currently.

At other brokers

ICICI Direct, HDFC Securities have historical e-margin products that have been rebranded or restructured under MTF. Specific naming varies by broker.

See also

External references

References

  1. SEBI, MTF framework, sebi.gov.in.
  2. Zerodha, MTF and product line, zerodha.com.

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