Buy More Pay Later (E-Margin) by Axis Direct

What is Buy More Pay Later (E margin) facility?

We're excited to offer you the Buy More Pay Later (E-Margin) facility!

This funding option is provided to help you trade on margin and potentially increase your buying power for higher returns. With E-Margin, you can borrow funds to purchase securities or use the securities themselves as collateral for borrowing. This means you only need to provide a small fraction of the investment value, typically around 25%, while the rest is covered, up to 75%. This allows you to buy up to four times as many shares as you would under the cash product. Keep in mind that the limit may vary for different stocks.

*This limit can vary for different stocks.

Why investor should use Buy More Pay Later (E-Margin) facility?

As an investor, you can benefit from Buy More Pay Later (E-Margin) facility. Here’s how!

Leverage:
By utilizing this facility, you can increase your investment size and purchase more shares than you could with your own funds.

Diversification:
E-Margin allows you to invest in a larger variety of stocks with the same amount of funds, providing diversification to your investment portfolio.

Opportunity:
This funding option gives you the opportunity to invest in stocks that you may not have been able to otherwise, potentially leading to higher returns.

Flexibility:
With E-Margin, you can easily purchase and sell stocks, which can be particularly beneficial in a volatile market. This provides you with more flexibility to adjust your portfolio according to changing market conditions.

Let’s understand how Buy More Pay Later (E-Margin) facility works.

Now let's use the illustration to fully understand this idea. If you purchase shares using E Margin rather than delivery.

Particulars	Delivery	Buy More Pay Later (E-Margin)
A. Funds you have (Investment Amount)	Rs. 10,000	Rs 10,000
B. Stock Price	Rs. 100	Rs 100
C. Effective funds required for the stock buy	Rs. 100	Rs 25 (75 % funded by Axis Securities)
D. Number of Share you can buy	100 Shares	400 Shares
E. Estimated Price of the stock after 3 months (assuming 50% appreciation)	Rs. 110	Rs 110
F. Market Value of the Stocks	Rs. 11,000	Rs. 44,000
G. Overall Potential Gain	Rs. 1,000	Rs 4,000
H. Return on Investments (Without considering brokerage and interest costs)	10%	40%
I Interest @ 18%p.a	-	450
Net Gain (Without considering brokerage &Govt Taxes)	Rs. 1,000	3550

Assume the stock is held for 30 days.
The above is only for Illustrative purpose.

Moreover, be sure you finish the online Buy More Pay Later (E-Margin) share pledge procedure on the Depository (NSDL/CDSL) on the same day that you get delivery of the purchased stocks in your Demat account.

What if stock price goes below the purchase price?

Investors may be subject to a margin call if the market price of a stock declines below the acquisition price of the shares under margin funding. Adding more money to their account in order to reach the minimum margin requirement is known as a margin call.

Normally the minimum margin requirement as a percentage of the total value of the securities held in the account. The investors may be asked to deposit more cash to bring the margin level back up to the minimum requirement.

Some more interesting fact you should know:

Hold you positions: For next 240 trading days
Convert to cash delivery anytime: Flexibility to pay outstanding amount anytime and stop paying interest charges
Square off anytime: Option to "square-off" your open position any time before the due date
Delayed payment charges: Nominal delayed payment charge of 18% p.a. on outstanding amount
Eligible Stocks: More than 800+ stocks are eligible for E-Margin. The margins are charged considering the category of stock, exchange guidelines and internal Risk Management

By now you must be excited to know the process how to activate this?

The activation process is very simple and will not take more than a minute.
Step 1. Click this link
Step 2. Enter Pan and email id
Step 3. Enter captcha and Proceed

How to place an order with Buy More Pay Later facility?

Once you have activated this facility you can place orders using any of our platforms, you just need to choose Buy More Pay Later (E-Margin) product from the Product Type drop down.

What to do after buying stocks using this facility?

When purchasing equities using Buy More Pay Later, you can:

Before T+240 trading days, square off your position.
You can convert into delivery by paying the outstanding money.
You must respond to the Margin Pledge request delivered by NSDL/CDSL through email and SMS within T+1 days to prevent square off (Mandatory)

Why Buy More Pay Later (E-Margin) Pledge

As E-margin (Buy More Pay Later) is offered under regulatory guidelines, it is mandated that the shares bought under E-margin are pledged in favour of the broker. Here are some simple steps to do it

Click on the link shared on your Email or SMS on T+1 day of MTF purchase
Enter OTP received on your registered mobile number
Select the Stocks bought using Buy More Pay Later (E-Margin) facility and confirm pledge

Please note that it is compulsory to do a E-Margin (Buy More Pay Later) pledge, but in case you don’t do a MTF pledge by T+1 day, Axis Securities' Risk Management System has the right to square off your open Buy More Pay Later position(s) or block further exposure /limits for Margin trades without any further intimation to you, anytime post T+1 th day.

For more information on this, please refer to FAQs.

Activate This Facility