General

On what amount is the interest charged while transacting through Pay Later – MTF?

Interest is charged only on the funded amount in your MTF transactions.

When you buy stocks through Pay Later (MTF), you only pay a portion of the trade value upfront (Initial Margin), and the remaining amount is provided by ICICI Direct (Amount Payable)

Funded Amount Calculation is as follows:

• If upfront margin is provide through cash: Funded Amount = Total Trade Value – Cash Margin

• If margin is provided through Shares as Margin (SAM), funded amount includes

  • Utilized SAM limits
  • Amount Payable

Hence, Interest is charged on Amount Payable + SAM limits (if utilized)

Assume a position worth ₹100,000 was created through MTF with an Initial Margin of ₹30,000 and Amount Payable of ₹70,000.

Funded amount will be as follows in different scenarios.

Interest will be charged on a daily basis against this Funded Amount.