Changes in Interest Calculation for MTF Trades Effective November 1st

Pay later (MTF) interest will now be charged on your total Pay later exposure, without offsetting unused funds in your account

For your Pay later (MTF) exposure, we were presently charging interest on your net exposure, after taking into consideration the unused funds present in your account. Starting November 1st, we will be charging interest on your total Pay later (MTF) exposure, without subtracting your unused funds.

Previously:

• You couldn't choose which stocks were converted from Pay later (MTF) to delivery (CNC), as our team would do this automatically basis excess cash present in your account
• You also could not withdraw any unused funds even if they covered the initial margin requirement for your Pay Later positions

The auto-conversion done by our team is now being stopped and we are offering the same functionality to you, via two new features:

1. Payout flexibility: You can now withdraw unused funds from your account, as long as your remaining cash balance and margin from shares cover the initial margin required for your open Pay Later positions
2. Position Conversion: You can now choose which stocks to convert from Pay later (MTF) to delivery (CNC). To do this, click the 'Position Conversion' button on the positions detail page after selecting the specific stock in your Positions tab. To know more about position conversion, click here

Starting November 1st, 2024, we will switch to charging interest on your total outstanding Pay Later (MTF) exposure, without deducting available cash balance from it at that point of time.

For ex: Earlier, if you had a Pay later (MTF) position of Rs. 5,00,000 with initial margin as Rs. 1,00,000 (4x leverage) and if you had Rs. 1,00,000 of funds in your account, interest was charged on Rs. 3,00,000.

Going forward, it will be charged on the gross outstanding of Rs. 4,00,000. You can now withdraw the additional Rs.1,00,000 or use it to convert your Pay later (MTF) positions to delivery (CNC). Please note, this does not impact your interest rate.