Rate of Interest: An interest rate of 18% per annum (or 0.049% per day) will be charged on the amount borrowed from Jainam through the MTF facility.
Interest Period: The interest will be calculated from the settlement day till a day before actual funds are received or the sell settlement date.
For example:
You bought 125 quantities of ABC shares at ₹1000 with a margin required of 20% on Friday and sold them next Friday. Here,
Buy value = ₹ 1,25,000
Your fund(cash collateral) = ₹ 25,000.
Jainam's funding = ₹100,000
Interest will be charged for 7 days from Monday (buy settlement day) to Sunday (a day before sell settlement date) Interest charged by Jainam = ₹ 1,00,000 x 0.049% x 7 = ₹ 343.
RELATED FACTS : - - The interest will be charged for your holding period from T+1 day until a day prior to sell settlement day.
- The interest will be calculated on a daily basis on the funded amount by the Jainam. The daily opening balance of the MTF ledger is considered the funded amount, which is used to calculate the interest at the rate of 0.049% per day.
- To know about other charges related to MTF, see What are the different charges applicable for MTF?
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