Yes, MTF orders are subject to three types of charges:
1. Pledging Charges:
- MTF Buy Transaction: You are charged ₹20 (plus GST) as pledging charges by CDSL
- MTF Sell Transaction: You are charged ₹20 (plus GST) as un-pledging charges by CDSL
Note: Stocks bought with MTF are pledged with CDSL to safeguard the interest of the broker in a situation where the client is unable to pay off the borrowed amount. These charges are applicable one time at the end of the day
2. Interest Charges:
- ₹20/day for every slab of ₹40,000 taken as MTF
- Interest charges are applicable per day until you exit the MTF position or until repayment. Example: If you’ve taken ₹70,000 as Margin Trading Facility, you would pay ₹20/day (for the first ₹40,000) + ₹20/day (for the remaining ₹30,000), totaling ₹40/day
Note: The slab is split for every ₹40,000. For any amount more than ₹40,000, a different slab will be applicable. For example, ₹45,000 = 2 slabs (1 slab for ₹40,000, next slab for the remaining ₹5,000). This will be applicable until ₹80,000. If users use more than ₹80,000 up to ₹1,20,000, 3 slabs will be considered, and so on.
3. Brokerage: Up to ₹20 per order
Terms & Conditions Apply:
RIGHTS & OBLIGATIONS OF STOCK BROKERS & CLIENTS FOR MARGIN TRADING FACILITY (MTF) - NSE & BSE