Buy Stocks with 4x Leverage in India Margin Trading Facility (MTF)
SEBI-approved facility with a transparent platform and clearly disclosed charges.
MTF is a SEBI-approved feature that lets you buy more stocks than your current account balance allows — by borrowing the remaining amount from your broker at a disclosed interest rate.
Activate MTF NowWhat if you could buy more stocks than your current account balance allows — using a SEBI-approved, regulated facility?
That is exactly what the Margin Trading Facility (MTF) allows you to do.
MTF is a SEBI-approved feature that lets you buy more stocks than your current account balance allows — by borrowing the remaining amount from your broker at a disclosed interest rate. You put in a part of the money as margin. Your broker funds the rest. You benefit from the price movement on the full position — but losses are also amplified in the same proportion.
Risk Warning: MTF involves leverage. This significantly increases the risk of loss. Losses are amplified in proportion to the leverage used. MTF positions are subject to margin calls and auto-liquidation if the minimum margin is not maintained. MTF is suitable only for investors who fully understand leverage and its associated risks. Please read all MTF disclosures and the MTF agreement carefully before activating.
MTF is a fully regulated, SEBI-approved facility. With Ashlar India, you can access MTF with a clean, transparent platform and clearly disclosed charges.
This guide explains everything about Margin Trading Facility — what it is, how it works, who it is for, and how to use it responsibly with Ashlar India.
What Is Margin Trading Facility (MTF)?
MTF — Margin Trading Facility — is a loan facility offered by your broker that allows you to buy stocks by paying only a portion of the total value upfront.
The broker funds the rest at a disclosed interest rate.
How Is MTF Different from Intraday Trading?
Many people confuse MTF with intraday trading. Here is the key difference.
Intraday Trading
Requires you to buy and sell the same stock within the same trading day. You cannot carry positions overnight.
MTF (Margin Trading Facility)
Allows you to hold your stock positions for multiple days, weeks, or even months — as long as you maintain the required margin and pay the applicable daily interest. You are not forced to exit the same day.
Who Regulates MTF in India?
MTF is fully regulated by SEBI — not a grey area product. Here is what SEBI has defined.
SEBI Rule 01
Which stocks are eligible for MTF (only SEBI-approved MTF stocks — generally liquid, well-traded scrips on NSE and BSE)
SEBI Rule 02
Minimum margin requirement (currently 25% of the stock value — meaning up to 4x leverage)
SEBI Rule 03
Maximum funding allowed per client
SEBI Rule 04
Rules for margin calls and position liquidation
SEBI Rule 05
Disclosure requirements for interest rates and charges
Benefits of Using MTF with Ashlar India
Key reasons why experienced Indian investors use Margin Trading Facility to increase their buying power.
4x Leverage
Buy more stocks than your available capital allows
25% Margin
Minimum margin requirement per SEBI guidelines
Days to Months
Hold leveraged positions — not just intraday
Demat Ownership
Actual shares in your Demat — earn dividends
Increased Buying Power on Quality Stocks
MTF gives you the ability to buy more shares than your available capital would otherwise allow. This lets you build larger positions in quality companies — but remember that losses are also amplified proportionally.
Hold Positions for Days, Weeks, or Months
Unlike intraday, MTF positions can be carried forward for an extended period. If you believe a stock will appreciate over the next few weeks or months, you can hold your leveraged position — subject to maintaining the required margin and paying daily interest.
SEBI-Approved and Fully Regulated
MTF is not a grey area product. It is a SEBI-approved, regulated facility. Using MTF through a SEBI-registered broker like Ashlar India is completely legal and fully protected under Indian securities law.
Shares Held in Your Demat Account
Unlike F&O positions that expire, MTF shares are actual equity shares — held in your own Demat account. You are a genuine owner of those shares, eligible for dividends, bonus shares, and corporate benefits.
Transparent Interest Rates
The interest you pay on the funded amount is charged daily. Ashlar India discloses the applicable MTF interest rate clearly during activation and on your account dashboard. No surprise charges — you always know your exact cost of holding. Please check with Ashlar India for the current applicable rate.
Efficient Use of Capital
MTF allows you to deploy capital across multiple opportunities. However, this also means your exposure to risk is spread across more positions. Always ensure your total risk is within limits you can manage.
Transparent Daily Interest Calculation
Interest on MTF is calculated daily on the funded amount and is fully transparent on the Ashlar India platform. No surprise charges at month end.
How Does MTF Work with Ashlar India?
A complete step-by-step guide to using Margin Trading Facility on the Ashlar India platform.
Open Your Ashlar India Demat and Trading Account
MTF requires an active Demat and trading account. If you do not have one, open your free Ashlar India account at ashlarindia.com in under 15 minutes — fully online.
Activate the MTF Facility
Log in to your Ashlar India account and activate the Margin Trading Facility. This requires signing a digital agreement acknowledging the terms of MTF — including the applicable interest rate, margin requirements, liquidation rules, and risk disclosures. Read this agreement carefully. Ashlar India's team will guide you through the process.
Check the MTF Stock List
Not all stocks are eligible for MTF. SEBI approves a specific list of stocks for margin trading — generally well-traded, liquid stocks on NSE and BSE. Ashlar India's platform clearly marks all MTF-eligible stocks. Only trade eligible scrips under MTF.
Ensure Sufficient Margin in Your Account
For every MTF purchase, you must maintain a minimum of 25% of the total stock value as your margin. For example, to buy ₹4 lakh worth of shares under MTF, you need at least ₹1 lakh in your account as margin. It is strongly advised to keep additional buffer margin to absorb normal price fluctuations and avoid margin calls.
Place Your MTF Buy Order
Search for an MTF-eligible stock on the Ashlar India platform. Select the "MTF" order type. Enter the number of shares you want to buy and confirm. Ashlar India funds the balance amount at the agreed MTF interest rate.
Shares Are Credited to Your Demat Account
The purchased shares — including those funded by Ashlar India's MTF — are credited to your Demat account on T+1 (next working day), as per current NSE and BSE settlement rules. These shares are pledged as collateral for the funded amount.
Monitor Your Position and Margin Level
Track your MTF position on the Ashlar India dashboard daily. The platform shows your current position value, margin used, funded amount, daily interest accrued, and your current margin percentage. If the stock price falls, your margin ratio changes — you must act quickly to add margin or reduce position.
Handle Margin Calls Immediately
If the stock price falls and your margin drops below the required minimum, you will receive a margin call — a notification to add more funds or sell some shares to restore the margin level. Respond to margin calls promptly. If you do not, Ashlar India may liquidate (auto-sell) part of your position to restore the required margin. This may happen at prices unfavourable to you.
Pay Daily Interest on Funded Amount
Interest on the funded portion is charged daily until you repay the funded amount. Ashlar India deducts interest automatically from your trading account. Always factor this interest cost into your profitability calculation. Contact Ashlar India for the current applicable interest rate.
Exit Your MTF Position
When you want to close your MTF position — to book profit or cut loss — simply place a sell order. The sale proceeds are used to repay Ashlar India's funded amount first, with the remaining balance credited to your account.
Why Choose Ashlar India for MTF?
Eight reasons why Ashlar India is a trusted platform for Margin Trading Facility.
Competitive MTF Interest Rates
Ashlar India offers MTF at competitive interest rates — clearly disclosed at the time of activation and visible on your dashboard at all times. Competitive rates reduce the cost of holding leveraged positions.
Wide List of MTF-Eligible Stocks
Ashlar India provides access to all SEBI-approved MTF stocks across NSE and BSE — giving you a broad universe of quality stocks for your MTF positions.
Real-Time Margin Monitoring Dashboard
Ashlar India's platform shows your live MTF position health at all times — current margin ratio, funded amount outstanding, daily interest accrued, and margin call risk level. You are never caught off guard.
Instant Margin Call Alerts
If your MTF position comes close to a margin call, Ashlar India sends you immediate alerts — via app notification, SMS, and email — giving you time to act before any auto-liquidation occurs.
Simple MTF Order Placement
Placing an MTF order on Ashlar India is straightforward. Select MTF as the order type, enter your quantity, confirm — done. No complex forms, no paperwork.
Transparent Interest Calculation
Every day, your MTF interest is calculated on the outstanding funded amount and displayed clearly in your account. No ambiguous charges.
Research to Support MTF Decisions
Ashlar India's research team provides daily stock information, technical analysis, and market updates — for informational purposes — to help you make informed decisions. Research reports do not constitute investment advice.
SEBI-Compliant MTF Framework
Ashlar India's entire MTF operation is built on SEBI's regulatory framework — eligible stock lists, margin requirements, funding limits, and liquidation rules all follow SEBI guidelines.
Common Mistakes to Avoid When Using MTF
Avoid these pitfalls to use MTF safely, wisely, and responsibly.
Mistake
Using MTF on Weak or Speculative Stocks
How to Avoid
MTF amplifies both gains and losses. Using leverage on a fundamentally weak, highly volatile, or speculative stock is extremely risky. A 25% fall in a stock where you have 4x leverage can wipe out your entire invested margin. Use MTF only on high-quality, liquid stocks — and only after thorough research.
Mistake
Ignoring the Daily Interest Cost
How to Avoid
MTF interest accrues every single day on the funded amount. Always calculate the break-even point — the minimum return needed to cover interest costs — before entering any MTF position.
Mistake
Not Keeping Buffer Margin
How to Avoid
Maintaining just the minimum 25% margin is risky. If the stock price falls even slightly, you could breach the minimum margin threshold and trigger a margin call. Always keep additional buffer margin to absorb normal stock price fluctuations.
Mistake
Ignoring Margin Call Notifications
How to Avoid
A margin call notification is urgent — not optional. Ignoring it means Ashlar India may liquidate your positions at unfavourable prices to recover the funded amount. Always respond to margin call alerts immediately.
Mistake
Over-Leveraging Your Portfolio
How to Avoid
Using MTF at maximum leverage across all positions simultaneously is extremely high risk. Even experienced investors use MTF selectively, on a small number of high-conviction positions, with controlled leverage. Never allocate your entire capital to leveraged positions.
Mistake
Holding MTF Positions Without a Clear Exit Plan
How to Avoid
Every MTF position must have a defined target price and a stop-loss before entry. Know your exit before you enter.
Mistake
Treating MTF as a Substitute for Long-Term Investing
How to Avoid
MTF is a short-to-medium-term tool for specific market opportunities — not a substitute for long-term wealth creation. For long-term investing, regular delivery purchases without leverage are generally more appropriate.
The most successful MTF users at Ashlar India use leverage selectively — on high-quality stocks, with disciplined risk management, and a clear exit plan before every entry.
Frequently Asked Questions
Everything you need to know about Margin Trading Facility with Ashlar India.
MTF is a SEBI-approved loan facility from your broker that lets you buy more stocks than your current balance allows. You pay a portion of the stock value (minimum 25%) as your margin, and the broker funds the rest at a disclosed daily interest rate. Your purchased shares are held in your Demat account and you can hold the position for days or weeks — not just intraday. Losses are amplified in the same proportion as gains.
SEBI allows a maximum of 4x leverage under MTF — meaning the broker can fund up to 75% of the stock's purchase value, while you contribute a minimum of 25% as your own margin. Ashlar India offers MTF up to the SEBI-permitted limit on eligible stocks.
If you receive a margin call and do not add funds or reduce your position, Ashlar India is required by SEBI rules to liquidate part or all of your MTF position to recover the funded amount and restore the minimum margin level. This may happen at unfavourable market prices — which is why responding to margin calls immediately is critical.
Yes. Shares purchased through MTF are actual equity shares held in your Demat account. You are eligible for all corporate benefits — dividends, bonus shares, stock splits, and rights issues — just like any other shareholder, as long as you hold the shares on the record date.
MTF involves leverage, which amplifies both profits and losses. It is not recommended for complete beginners who are still learning how the stock market works. MTF is best suited for investors who already have experience with delivery-based stock investing and fully understand how stock price movements affect leveraged positions. Begin with regular delivery investing and consider MTF only after gaining sufficient experience and understanding.
Intraday trading requires you to buy and sell the same stock on the same day — no overnight positions. MTF allows you to hold leveraged stock positions for multiple days, weeks, or months, subject to maintaining the required margin and paying daily interest. MTF shares are actual equity shares in your Demat account.
SEBI approves a specific list of stocks for MTF — generally the most liquid, well-traded scrips on NSE and BSE. This list is maintained and updated by SEBI and the exchanges. Ashlar India's platform clearly identifies all MTF-eligible stocks.
Ashlar India charges a disclosed interest rate on the funded MTF amount. The exact rate is shared during account activation and is displayed transparently on your MTF dashboard at all times. Interest is calculated daily on the outstanding funded amount. Contact Ashlar India or check your dashboard for the current applicable rate.
SEBI regulations allow MTF positions to be held as long as you maintain the required margin and pay the applicable daily interest. There is no fixed maximum holding period — subject to maintaining margin requirements and paying interest.
Log in to your Ashlar India trading account, go to the MTF section, review the terms and conditions — including applicable interest rates, margin requirements, and liquidation rules — and complete the digital agreement. Once activated, you can place MTF orders on all eligible stocks. Contact Ashlar India's support team if you need guidance during activation.
Use MTF WiselyStart Today with Ashlar India
When a quality company's stock presents a clear opportunity, MTF gives you the ability to take a larger position — while keeping your other capital available for additional opportunities.
They need someone they trust to guide them. When a quality company's stock presents a clear opportunity, MTF gives you the ability to take a larger position — while keeping your other capital available for additional opportunities.
"More buying power. More opportunity. More Ashlar India."
Our team is here to help you understand MTF, activate it, and use it responsibly.
With Ashlar India's MTF, you get:
- Buying power on SEBI-approved MTF stocks — NSE and BSE
- Competitive MTF interest rates — disclosed transparently
- Hold leveraged positions for days, weeks, or months — not just intraday
- Real-time margin monitoring dashboard with instant alerts
- Actual shares in your Demat account — eligible for dividends and bonuses
- Research information to support your MTF decisions
- Simple MTF order placement
- SEBI-compliant, fully regulated MTF framework
- Free account opening — 100% online in 15 minutes
SEBI-approved · Competitive interest rates · Free account opening
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