MTF working in in-depth

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1

Say I bought some shares worth outside my overall capital using MTF, If I intentionally haven’t pledged the shares on the same day, It is obvious it don’t have enough balance for the shares to be converted into normal delivery. Under such scenario my holdings will be sold in T+5 days.

Based on above scenario answer
1.Would I be charged interest even after without pledging the shares.
2.Do I get benefit of any profit or loss made in those T+5 days
3. Do I have the authority to sell the shares before completion of T+5 days (Whenever I Want )
4. And finally are there any additional penalties or charges involved.

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2

Hi @Harish3, please find below the responses to your inquiry.

  1. The interest shall apply to the debit amount recorded in the ledger.
  2. You will be responsible for managing the profit or loss incurred on the position.
  3. Absolutely, you have the freedom to square off the position at your convenience.
  4. If the Risk team squares off the position, charges for squaring off and DP outgoing charges will be applicable.

Hope this clarifies.

3

Can you explain the 4th point in detail, and are the charges you mentioned common for any MTF trade. @Karan

4

A response would be good

5

Sir please send exact date to start MTF

6

Hi @Harish3

The charges mentioned above are the square of charges which are â‚ą 20 / order + GST and Dp Charges is â‚ą 12.50 / instruction / ISIN + GST.

Please refer this

7

Need clarity @Karan @Divyesh

  1. By debit amount you mean my overall borrowed money.
  2. Mean the profit I make by selling would be mine.
  3. Settlement for delivery is changed to T+1, can I know by what time settlement happens on (T+1)th day.
8

@Harish3

  1. Let’s say you bought a stock with 2,500/- (your funds) and 7,500/- (funded value). If you sold this stock with a profit of 1,000/- then your gross value will be 3,500/- before any charges deduction.
  2. Yes, profit or loss will be credited & debited respectively in your account.
  3. There are two settlements Pay-in and Pay-out, the firstly happen at 10:30 AM and Payout at 1:00 PM, this was the exchange standard timing across all brokers.
9

You forgot to include “Debit balance” @Divyesh

10

@Harish3

In the above example shared, the ledger balance will be negative with -7500/- approx in case of MTF position is not pledged.