How is interest on Margin Trading Facility (MTF) funding calculated at Jainam?

How is interest on Margin Trading Facility (MTF) funding calculated at Jainam? 

MTF interest is charged on the amount funded by Jainam. The standard interest rate is 18% per annum (0.049% per day); however, the applicable interest rate may vary as per the prevailing terms. 

Interest Period: Interest starts from the purchase settlement date and continues until the applicable fund repayment/sale settlement date. 

Example: You purchase 125 shares of ABC at ₹1,000 with a required margin of 20% on Friday and sell them the following Friday. 

  • Buy Value: ₹1,25,000 

  • Client’s Margin: ₹25,000 

  • Jainam’s Funding: ₹100,000 

  • Interest Period: 7 days—from Monday (buy settlement date) to Sunday (the day before the sell settlement date) 

  • Interest: ₹100,000 × 0.049% × 7 = ₹343 

Thus, at the standard rate, the interest on ₹100,000 of MTF funding for 7 days would be ₹343. 

Calculate MTF Interest

Understand how MTF interest is calculated, including the applicable interest rate, interest period, and calculation example.

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