Margin Funding

Will I get the dividends paid by the company if I buy the stock in MTF?

Yes, you will be eligible to receive any dividend paid by the company as long as the stock was held by you on the specified record date.

When you hold stocks under MTF, you are still the beneficial owner of those shares, even though they are pledged. As a result, any dividend declared by the company is credited directly to the bank account linked to your demat account.

Example:

• You buy 1,000 shares of XYZ Ltd. through MTF.
• XYZ Ltd. declares a dividend of ₹5 per share.
• Since you are the beneficial owner, you will receive ₹5,000 (1,000 shares × ₹5 per share) in your registered bank account on the dividend payout date.