Mutual Funds
What is Margin Trading Facility?
Margin Trading is trading with borrowed funds/securities. It is essentially a leveraging mechanism which enables investors to take exposure in the market over and above what is possible with their own resources. SEBI has been prescribing eligibility conditions and procedural details for allowing the Margin Trading Facility from time to time.
The facility of margin trading is available for Group 1 securities and those securities which are offered in the initial public offers and meet the conditions for inclusion in the derivatives segment of the stock exchanges.
Advertisement
More from this specialization
- As a unit holder, how much time will it take to receive dividends/repurchase proceeds?
- What is the history of Mutual Funds in India and role of SEBI in mutual funds industry?
- How to choose a scheme for investment from a number of schemes available?
- What should an investor look into an offer document?
- How can the investors redress their complaints?
- How long will it take for transfer of units after purchase from stock markets in case of close-ended schemes?