Geojit MTF Review

• 4X Buying Power: Increase your investment exposure by up to 4x your available capital.
• Single-Click Activation: Activate the MTF facility through MyGeojit by simply accepting the terms and conditions. Activation is completed within 24 hours.
• No Time Limit for Holding: There is no fixed holding period for shares purchased under MTF.
• Lower Interest Benefit: Enjoy a reduced interest rate of 6.99% if the position is opened and closed within 15 days.
• Margin Against Pledged Shares: Stocks in your demat account can be used as collateral to avail a margin.
• No 7-Day Debit Block: Unlike regular trading accounts, the MTF account will not be blocked after 7 days, even if there is a debit balance.

To avail of the Margin Trading Funding (MTF) facility with Geojit Financial Services Ltd, you must meet the following eligibility requirements:

Steps to Activate MTF via MyGeojit:

You can activate the MTF facility online through the MyGeojit portal in just a few steps:

1. Log in to your MyGeojit account and go to Profile
2. Select Activables > MTF Registration
3. Carefully read and accept the applicable Terms & Conditions, then click Register

The MTF facility will be activated from the next trading day.

How to Place an MTF Order on FLIP / TraderX

Once activated, placing an MTF trade is simple:

• Open the order placement window on FLIP or TraderX
• Select the Product Type as MTF
• Enter the stock details and place your order

Eligibility Criteria

• To avail the Geojit MTF facility, you must:
• Have a trading and demat account with Geojit.
• Accept the MTF terms and conditions.
• NRE and NRO accounts are not eligible for MTF.
• MTF is also available for HUF and non-individual accounts. These clients need to contact their respective Geojit branch to activate the facility offline.

How to Pledge Shares for MTF?

From 24 February 2025, OTP-based authorisation is no longer required for MTF pledge processing.

When you select MTF as the product while placing a trade, it is automatically treated as a Margin Trading Funding order. The pledge process is initiated and processed directly by the exchange upon notification from Geojit Financial Services Ltd.

Step-by-Step Process to Pledge Shares for MTF

1. Log in to your Geojit trading platform (FLIP / TraderX / MyGeojit).
2. Select an eligible NSE Group 1 stock approved for MTF.
3. In the order placement window, choose Product Type as MTF.
4. Enter the quantity and place the order.
5. Once the trade is executed, the exchange will automatically process the pledge based on the broker’s intimation.
6. The purchased shares will be reflected as pledged under your MTF holdings in your demat account.

You can convert your MTF (Margin Trading Funding) position into a Delivery position in Geojit Financial Services Ltd, subject to certain conditions.

Conditions for Successful Conversion (MTF to Delivery)

• The MTF facility must be activated in your trading account.
• The conversion request must be placed on the same day of trade (T Day).
• You must have sufficient funds/margins available to convert the position into full delivery.
• The shares must be MTF-eligible scrips.
• The original order must have been executed through NSE.

Steps to Convert MTF to Delivery

Log in to your Geojit trading platform (FLIP / TraderX / MyGeojit).

1. Go to your Positions / Order Book section.
2. Select the MTF position you want to convert.
3. Choose the Convert to Delivery option.
4. Ensure sufficient funds are available in your trading account.
5. Confirm the request before 3:30 PM on T Day.

Under Geojit’s MTF, both margin and funded stocks must be pledged as collateral (no pool holding).

If the client does not confirm the pledge for funded shares by T+2, the position is squared off on T+3.

In short: Pledge confirmation is mandatory within T+2 to avoid automatic square-off.

Pros

• Competitive Short-term Interest Rates: Geojit offers a reduced interest rate of 6.99% p.a. if the position is opened and closed within 15 days. This makes it one of the more affordable options for quick swing trades.
• High Leverage: You can get up to 4x exposure (approximately 3.7x your margin), significantly increasing your buying power for delivery-based trades.
• Flexible Collateral: You can provide the required margin using cash or by pledging existing shares in your demat account (after a standard haircut).
• No Time Limit for Holding: Unlike intraday trading, there is no fixed holding period for MTF shares, provided you maintain the required margin and pay interest.
• Continuous Trading: Your account is not blocked after 7 days, even if there is a debit, unlike standard trading accounts.
• Corporate Benefits: You remain the owner of the shares and continue to receive all corporate benefits, such as dividends and bonuses, directly.

Cons

• High Long-term Interest Rates: If you hold a position for more than 15 days, the interest rate jumps to 18% p.a. for the entire duration. This can quickly erode profits if a trade doesn't move in your favor quickly.
• Limited Stock Universe: The facility is only available for NSE Group 1 shares and other specific stocks selected by Geojit. You cannot use MTF for all listed securities.
• Risk of Forced Liquidation: If the market price of your funded stocks drops significantly and you fail to meet a margin call (typically triggered by a 10% fall in the portfolio value), Geojit may liquidate your holdings to recover the funded amount.
• Additional Charges: In addition to interest, standard brokerage charges apply to both the buy and sell sides of MTF trades. There are also pledge creation and closure charges involved in the process.
• Complexity for Beginners: Managing leverage requires active monitoring. Sudden market volatility can lead to "short margin" penalties or unexpected exits from positions.

Geojit Financial Services Ltd’s MTF provides a flexible way to enhance buying power with up to 4X leverage, allowing investors to take larger positions with limited capital. The facility is further supported by competitive interest rates starting at 6.99% (for positions squared off within 15 days) and no strict holding period, making it suitable for short-term opportunities as well as extended holding strategies.

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