Required margin and leverages may vary from stock to stock and it can be computed as per the formula given in the  below table 

VaR is Value at Risk Margin  and this can be checked from the NSE website on typing the stock name in the search bar.

ELR is Extreme Loss Rate

As per the calculation given above, let's compute the leverage you would get with an available margin of 10 lakhs in MTF

Available Margin - 10,00,000

Current Market Price - 2350

No of shares that could be bought under CNC - 10,00,000/ 2350 = 425 shares

No of shares that could be bought under MTF

3 times if the MTF margin is equal to or less than 30%

2 times if the MTF margin is between 31% and 50%

Full margin where MTF margin is above 50%

Calculation

MTF Margin = VAR + 3 x ELR (as Reliance trades in F&O segment)

Var = 9

ELR or Extreme Loss Rate = 3.5

Var + 3 x ELR = 9 + 3 x 3.5 = 19.5

 As VAR+ 3 times ELR (which is the SEBI MTF Margin requirement) is less than 30%, at Navia, you can buy up to 3 times of your available margin.

Illustration

Available margin - 10 lakhs

Total value of Reliance that can be bought in MTF - 30 lakhs (3 times available margin)

Total number of shares that can be bought  in MTF - 1276 shares (3000000/2350)

At Navia, we collect margin slightly higher than SEBI required margin, in order to accommodate Mark to Market losses which may arise depending on market movement. As per SEBI Regulations, M to M losses arising on MTF purchases, has to be collected from clients on a daily basis. Hence, to avoid daily M to M Call, we collect slightly higher margin to accommodate these requirements.