Fresh Update in MTF Limits on 22nd Oct, 2024

Market Announcements 📢
1

Dear Users,

We are making certain updates in our MTF margin requirements due to a recent SEBI circular that requires us to maintain VaR + 5 times the Extreme Loss Margin (ELM) when a client is making MTF purchases in Group 1 securities. Considering this will affect the margins we are able to provide on Group 1 securities, we have decided to extend some relaxation on other categories of stocks as follows:

  1. All NIFTY 50 scrips will be updated to have 4X leverages with 25% margin requirement OR Var + 5 times ELM (as per exchange margins) WHICHEVER IS HIGHER.
  2. NIFTY Next 50 scrips will now have a higher leverage of 2.5X with 40% margin requirement. (reduced from the earlier 50% margin requirement)
  3. All other scrips will remain constant with 2X leverage or 50% margin requirement.

This means that your margins will be adjusted per the new limits and in certain cases additional margins may be required to maintain your MTF limits. In case you have existing MTF holdings/positions, we request you to check your margin summary on Dhan & accordingly maintain additional balances to avoid square off by our systems before 11th Oct, 2024.

These adjustments have been made with the best interests of our users in mind and as part of our regular risk assessments to ensure both your safety and operational efficiency considering market situations.

Happy Trading
Pranita
Product @ Dhan

2 Likes
2

Dear Traders,

An update to this post-

We have made some further relaxations to our MTF policy as follows. Check detailed list here. Please ensure you have sufficient margins in place by 25th Oct, 2024 to ensure risk does not not square off your existing MTF positions. .

Exposure Current Revised
Client wise Gross Exposure 15 lac 25 lac
Single stock Exposure 10 lac 10 lac
Haircut Current Scrips Revised Scrips
~26% 47 105
35% 50 126
40% 0 224
50% 913 549
Total MTF Allowed 1010 1010

Thanks,
Pranita
Product @ Dhan

3 Likes
3

Can these type of liquidity injections induce market stability? Should we take it as a hint that it’s the right time to risk more margin in the broader market?

4

I have open positions in mtf plz tell me the auto square off rules as I am trading budget day when will my shares auto squared off.i have 6000 for what amount they square off with negative balance of 1400 and total loss of 3000

5

Negative balance exceeding T+5 days would lead to square off.

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6

I paid the margin shortfall but when the market is moving up my stocks went up and my loss is reduced but money is not getting credited when will money get credited?