Margin Trade funding is a debit (loan) extended to clients by brokers to leverage their existing holdings / cash balances and accumulate more stock on this loan.  This is unlike a normal purchase where the debit has to either be cleared in T+7 days or the broker squares off the position.

The facility is available only against Group 1 stocks as per SEBI regulations , unlike a normal broking book,  which may allow various other categories of purchase depending on exchange guidelines and internal risk management policies. 

All clients who have signed off the rights and obligations document, have pledged MTF collateral for margin purposes and are eligible for cash segment can participate via this product. Initial Margin can be paid by client in the form of Cash/Group I Securities. The minimum margins to be levied by broker on such margins is also defined by exchanges.

The product , broker eligibility , reporting requirements, minimum criteria on stocks and client limits etc comes under the purview of SEBI circular https://www.sebi.gov.in/legal/circulars/jun-2017/circular-on-comprehensive-review-of-margin-trading-facility_35098.html.