Margin Funding

What are Group 1 stocks? What happens if stock bought in MTF moves out of Group 1?

Exchanges classify stocks in 3 different categories based on their liquidity and impact cost, which are Group I, Group II and Group III stocks. Out of these, only Group 1 stocks are eligible for buying in MTF.

A stock may move between the groups every month, depending on its liquidity and impact cost changes.

Impact on MTF if a stock moves out of group 1

If a stock moves from Group 1 to another group, it will no longer be eligible for buying in MTF. Any existing MTF open position in the stock held by you, will have to be either converted to delivery or squared off before the cut-off date. If any MTF positions are held post the cut-off date, they will be automatically square off by the system.

Information regarding the stock group change and the cut-off date will be communicated to you in advance.