If I want to buy a stock using MTF, but I buy shares in tranches in one trading session, will each tranche have pledging charges or pledging charges are calculated only once as it is one stock?
Hi @Trader_FT, It’s a bit more nuanced than a simple yes or no.
Pledging under MTF is handled by NCL resulting into Direct Payout. When you place multiple buy orders in tranches, the system may generate one or multiple pledge requests depending on how those orders are processed.
In the case of MTF, depending upon the stock payout entries via direct payout. Ex. if a You buy 100 qty and the stock payout is received in two parts first 40 qty and then 60 qty then the pledge charges will be applied twice, since the PSN number is generated twice, the unpledge charges will also be applied twice
Earlier, when direct payout was not implemented pledging was done end of day via OTP, this usually resulted in a single pledge. With real-time pledging, this behaviour can vary based on order execution and processing.
Okay. That is helpful information. Thank you.
Can all the stocks bought using MTF be converted to regular holding, if I have funds in the account?
Yes @Trader_FT