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    All you need to know about Buy Now Pay Later (MTF) while investing in Stocks...
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    Buy Now Pay Later MTF

    How does MTF Work?

    With MTF, you can buy stocks by paying a marginal amount, and ICICI Direct funds the rest. You can hold the position for up to 360 days as a leveraged position or pay back the remaining amount anytime to get the shares released in your demat account, also known as convert to delivery (CTD).

    Let’s understand this with an example. Say you want to buy 1,000 shares of ABC Ltd. at ₹100 per share, but you have only ₹25,000 in your account, you can use MTF to increase your buying power to ₹1,00,000 with 4X leverage.

    If price ABC Ltd. stock rises to ₹110 per share then:

    Particulars Amount Calculation
    Invested Amount  ₹1,00,000 ₹25,000 (Your Money) + ₹75,000 (Borrowed Funds)
    Value of shares at time of selling ₹1,10,000 1,000 shares × ₹110
    Profit ₹10,000 ₹1,10,000 – ₹1,00,000
    Return on Investment (ROI) 40% on his initial ₹25,000 (excluding charges) ₹10,000 / ₹25,000

    If price ABC Ltd. falls to ₹90 per share then:

    Particulars Amount Calculation
    Invested Amount  ₹1,00,000 ₹25,000 (Your Money) + ₹75,000 (Borrowed Funds)
    Value of shares at time of selling ₹90,000 1,000 shares × ₹90
    Loss ₹10,000 ₹90,000 – ₹1,00,000
    Return on Investment (ROI) (-40%) on his initial  ₹25,000 (excluding charges) ₹ (-10,000) / ₹ 25,000
    Who should use MTF? How to monitor your MTF positions for margin shortfall? What are the costs involved while transacting in Pay Later- MTF? What is the interest rate charged for taking position in MTF? How long can I hold my stock/positions in MTF? What is the margin required for creating positions in MTF? Is the margin required for buying the stock, same whether we use cash or limits from Shares as Margin? On what amount is the interest charged while transacting through Pay Later – MTF? Why are my MTF shares not shown in Demat Holdings on ICICI Direct? Impact of Stock Split on your MTF Position in BEML Limited Why has margin been released from my MTF position? What happens if there is a margin shortfall in my MTF position with ICICI Direct? What will happen if my outstanding MTF interest is not paid? Why can’t I convert my MTF positions to Delivery (CTD)?
    What is Margin Funding (MTF)? Where can I see my MTF stocks after buying them? What is Trigger Price in MTF? What Happens if the Stock Price Falls Below It? What are the different action options in the MTF page? Will I get the dividends paid by the company if I buy the stock in MTF? How can I convert my MTF (Pay Later) positions to delivery? How to find out the interest charged for my MTF trades? What is the impact of Corporate action such as Bonus Issue or Stock Split on my MTF position? What is Trade-to-Trade segment (T2T)? What happens to my MTF position when stock goes into Trade-to-Trade segment (T2T)? What are Group 1 stocks? What happens if stock bought in MTF moves out of Group 1? What is the maximum position that can be taken in a single stock through MTF? Why are my profits from MTF are not available in current limits? Can we check shortfall amount or additional margin required for MTF position in the App? If I take multiple MTF positions in the same stock on different dates, which date will be considered for expiry? Why is my MTF position squared off/closed/sold by ICICI Direct? What are the maximum holdings/limits that can be created in MTF?
    What is the process of pledging? Will there be any charge on Pledging/Un-pledging the shares? Can I square off or convert to delivery my pledged MTF position? Why have I not received any pledge link/instruction for my MTF positions? Why is my Pledge not confirmed in MTF? What is CSMFA and why are my shares auto pledged in MTF in CSMFA?
    Why is interest charged on my MTF position even after I have squared off/sold it? How is Interest Charged for MTF? What is “Interest on MTF(SAM)” and why am I being charged this? Where is the MTF interest debited from? What will happen to my CAMS MTF position during Stock Split? What is the impact of Hindustan Unilever demerger on my MTF Positions?
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