If a stock held under Margin Trading Facility (MTF) gets suspended from trading on the exchange, it immediately becomes ineligible for MTF funding. Suspension can happen due to regulatory action, company non-compliance, merger-related announcements, or other corporate events that affect trading activity.
When a stock is suspended, trading in that security is halted, and investors cannot buy or sell it until the suspension is lifted. In such cases, FYERS will stop providing funding support for that position, and 100% of the stock value will be blocked from the client’s account.
Example:
| Scenario | What happens |
|---|---|
| The stock remains suspended for an extended period | Since trading remains halted, the client will not be able to exit the position until the exchange lifts the suspension. |
| The client does not have sufficient free balance in the account | As the stock becomes fully funded, the client must maintain the required funds in the account against the blocked position value. |
| The client is unable to sell the stock after suspension | This is expected because exchange-level suspension stops all trading activity in that security. |
| The suspension is revoked by the exchange | Trading can resume only after the exchange restores the stock for trading, subject to applicable exchange rules and market conditions. |