Are Margin Trade Facility (MTF) orders chargeable?

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*

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