Group I stocks available for trading in the F & O Segment VaR + 3 times of applicable ELM*

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1. What is Margin Trading? Ans: Margin Trading is essentially buying stocks by partly putting in your own money and the rest being funded by the broker. As a result you can buy larger quantity of stock with the same amount of money (you only pay a part of the total value) as opposed normally buying them by paying the entire value of the stock. 2. What is initial margin? Ans: The amount that you put in to buy stock in MTF is known as initial margin. In order to avail margin trading facility, minimum initial margin required shall be Category of Stock Applicable margin Group I stocks available for trading in the F & O Segment VaR + 3 times of applicable ELM* Group I stocks other than F&O stocks VaR + 5 times of applicable ELM* VaR Value at risk margin ELM Extreme loss margin 3. What is Margin trade funding (MTF)? Ans: MTF is a facility offered by the Broker to its customers to buy stocks with a minimum required margin and hold the stocks for lifetime by maintaining the required margin. 4. What is the benefit of MTF? Ans: Client can carry delivery position for lifetime, by paying only a small percentage of the securities value known as margin amount, instead of the entire value of securities. e.g. If you have to buy Reliance Industries shares worth Rs. 1,00,000 then the margin amount to be paid by you will be around Rs.25000, the remaining amount of around Rs.75000 will be funded by Reliance Securities. You can carry this position for lifetime. In case you wish to take delivery you just need to repay the funded portion. Interest will be charged on the funded amount/debit amount. Normally, with Rs. 22,500 limit you could buy only Rs. 22,500 worth of Stocks. Using MTF you can now enter position worth Rs. 1,00,000 with Rs. 22,500 limit. 5. Do I need to open a separate demat account for MTF funding? Ans: No, a separate demat account is not required for availing this MTF funding facility. 6. How can I avail Margin trade funding? Ans: Client has to provide his/her consent for availing Margin trade funding facility, a) Online on the Instaplus (http://trade.rsec.co.in -> R-Offerings -> MTF Consent)platform by accepting the terms and conditions of MTF facility b) Offline by submitting a consent form available on Reliance Securities website to your nearest Reliance Securities outlet. http://www.rsec.co.in/customer-care/download-forms -> Request forms 7. How can client take position in MTF?

Ans: Client can choose NRML order type to create position in MTF. 8. How can client exit position in MTF? Ans: Client can choose NRML order type to exit position in MTF. 9. Whether all the orders placed as NRML Product will be considered in Margin trade funding (MTF)? Ans: At the end of the day, all the net open buy position would consider for MTF funding based on the following criteria: a) The scrip should be as per approved basket of MTF b) The existing client funding is within the amount prescribed by SEBI c) The existing client funding across all clients in Reliance Securities is within the amount prescribed by SEBI d) Client should have sufficient collateral/cash margin to avail this facility 10. Whether stock bought in other product like MIS/CO/BO would be also consider for MTF Funding? Ans: MIS/CO/BO are intra-day product, but in case of any open position at the end of the day, because of not squaring off, would be considered for MTF funding (subject to criteria mentioned in previous question) 11. Which securities would be eligible for MTF funding? Ans: Group -1 Securities specified by SEBI 12. How much margin would be charged for MTF? Ans: According to basket defined by the Reliance securities limited. MTF Basket is available at http://trade.rsec.co.in -> Reports -> Scrip Basket -> MTF Basket 13. Whether MTF position would be shown in holding on next day? Ans: MTF position would NOT be shown in "View holding" on next day. 14. Where I can see my funded MTF position on trading platform? Ans: Till such time client does not square off position, same would be shown in RMS View LIMIT Present position window and "Net position window" (Shortcut key - F11) with product code NRML 15. Open position would be shown with daily settlement price or with original buy price? Ans: Open position would be shown with original average Buy price and not with the daily settlement price. 16. Is position conversion allowed from Open NRML Carry Forward Position (MTF position) to any other product viz. MIS/CNC etc. or vice versa?

Ans: Position conversion is allowed subject to margin availability. 17. Where I can see margin blocked against MTF open position? Ans: Margin blocked can be seen under Scrip basket margin present column (Here MIS & NRML product both margin would be displayed) 18. Upto how many days can I carry forward my MTF positions? Ans: Client can carry his open position in MTF for lifetime subject to maintaining required margins. 19. If inverse price movement happen, would RMS initiate the liquidation? Ans: Client has to maintain minimum margin as defined by Reliance securities. If there is a shortfall in margin requirement then risk team would initiate the liquidation. 20. In what condition will Reliance Securities liquidate my position? Ans: Reliance securities would liquidate positions if they come under risk. 21. If I do not want to liquidate position and want to pay the outstanding funds to take delivery, what should I do? Ans: Please contact Customer Care for the same. 22. What happen in case of corporate action in Stocks which are bought under margin funding? Ans: The position would be moved to non-funding status, considered as normal debit and must be cleared within 7 days trading days, else risk will liquidate the position in T7 liquidation process. 23. Can my derivatives position also get funded? Ans: No. MTF is only available in the cash segment. 24. What is the difference between a normal trading and MTF? Ans: In normal trading Broker allows the client to purchase the securities under any product like CNC, MIS, NRML etc. and hold it for a period of T+2+5 days. On the 7th day the securities shall be liquidated. But under the MTF account client can purchase the securities only under NRML, and hold them for lifetime by meeting the required margin requirements. 25. Will there be daily settlement of MTF positions? Ans: No, settlement will not be on a daily basis. The margin shortfall will be communicated (via Email and SMS) to the client on a daily basis. If the margin amount falls below required threshold margin for a stock as decided by Reliance Securities, it will result in liquidation of the position. 26. Is there any cash-collateral ratio for initial margin?

Ans: There is no cash collateral ratio for initial margin. 27. How can I provide collateral? Ans: For existing clients opting for MTF facility, limits against stocks from SEBI approved basket list in your Reliance Securities account will automatically be available to be provided as margin. If a client wishes to provide more collateral he/she can do so by transferring stocks that are from SEBI approved basket list in the Reliance Securities account 28. Is there any charge for moving stock in and out of collateral? Ans: DP charges will be applicable for moving stocks from demat to collateral. There are no charges for moving stocks back from collateral to demat. 29. What happens if the value of collaterals provided for MTF goes up? Ans: The margin available for trading will increase which can be used to create further positions under MTF facility. 30. What if I receive dividend on collateral stocks? Ans: The Dividend amount will be credited to your ledger. 31. Is it possible to replace stock collateral? Ans: Yes, client can provide new collateral (subject to stock being from the SEBI approved basket of securities). Client needs to contact Customer Care for the same as it is a manual process. 32. What if my stocks bought under MTF (Margin Trading Facility) get appreciated? Will I get additional margin on it? Ans: No. MTF profit/loss is notional. The notional gain in stocks bought under MTF will not provide an additional margin to further create new positions. 33. What is the rate of interest charged for MTF? Ans: Kindly contact the customer service team to know in details about the interest rate. 34. Is Short Selling allowed in MTF? Ans: No, Short Selling is not allowed in Margin Trading Facility. 35. When can I sell the position under MTF? Ans: You can sell the position under MTF anytime. 36. Which charges are applicable for MTF? Ans: All charges applicable for trading will be applicable for MTF. 37. What happens if the collateral provided for MTF is removed from the SEBI approved basket?

Ans: Client will have to provide cash or new collateral from the SEBI approved basket to cover the margin shortfall. 38. If MTF is in debit and cash is in credit then will interest be calculated on net amount? Ans: Yes interest will be calculated on the net amount. 39. If a client has FnO, NRML and MTF position, what is the order of liquidation by Risk team? Ans: The risk team will first liquidate FnO then NRML and finally MTF position. MTF position would be shown in RMS View LIMIT Present position window and "Net position window" (Shortcut key - F11) with product code NRML whereas NRML position will be shown in holding. 40. Can I trade in CNC if I have opted for SEBI margin funding? Ans: For the scrip basket of SEBI margin funding you will have to use NRML order type. You will get the error if you try to place an order through CNC. If you want to sell from holding then you will have to choose CNC order type. 41. Can I opt out of SEBI margin funding product? Ans: Yes. User has to submit an opt out of SEBI margin funding product request post login. 42. When will my request be processed? Ans: If you submit the online consent before 7:00 pm then SEBI margin funding will be activated on T+1 working day. Online consent received after 7:00 pm for SEBI margin funding will be activated on T+2 working day. The cut off time for offline request is 3:30 pm. SEBI margin funding will be activated on T+2 working day. 43. List of scrips in SEBI margin funding basket. Ans: The Basket will be available under http://trade.rsec.co.in -> Reports -> Scrip Basket -> MTF 44. Can I avail limits based on cheque? Ans: No. Limits are not allowed based on cheques.

Scenarios for Clients who have opted to avail SEBI margin funding facility: 1. Client has Rs. 10,000 cash and buys Reliance Industries worth Rs. 10,000 where margin required is Rs. 2250 (22.5%) This trade will automatically get funded but interest will not be charged. On the next day margin of Rs. 2,250 (22.5%) will be blocked and Rs. 7,750 will be free for payout or available for creating SEBI MTF position (MTF position can be carried for lifetime by maintaining required margins, but will be liquidated if client comes in risk) 2. Client has Rs. 10,000 cash and buys Reliance Industries worth Rs. 44,400 where margin required is Rs. 9,990 (22.5%) This trade will get funded. On next day Rs. 9,990 margin will be blocked and no limits will be available to create further positions. 3. Client has Rs. 10,000 collateral and buys Reliance Industries worth Rs. 44,400 where margin required is Rs. 9,990 (22.5%) This trade will get funded. On next day Rs. 9,990 margin will be blocked and no limits will be available to create further positions. 4. Client has Rs. 10,000 worth of collaterals and Rs. 10,000 cash and buys Reliance Industries worth Rs. 65,000 where margin required is Rs. 14,625 (22.5%) For margin requirement, first collateral will be blocked and then cash. Above trade will get funded where Rs. 10,000 worth of collateral and Rs. 4,625 cash will be blocked and Rs. 5,375 will be free for payout or available for creating SEBI MTF position. 5. Client has Rs. 10,000 collateral and buys Reliance Industries worth Rs. 44,400 where margin required is Rs. 9,990 (22.5%). This trade will get funded. On next day if client sells Reliance Industries worth Rs. 10000 Even if client sells stock form DP, first MTF position will be adjusted and then from collateral position will be adjusted. For above sell trade the client s position will be reduced by Rs. 10,000 from Rs. 44,000 to Rs. 34,000. 6. Client has provided Rs. 10,000 worth of Reliance Industries Stocks as collaterals. Client now wishes to buy Reliance Industries worth Rs. 44,400 where margin required is Rs. 9,990 (22.5%). Yes, the above trade will be funded. Client can take exposure in same stock which he/she has provided as collateral. In case of liquidation first MTF position will be liquidated and then collateral position.