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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

    Why is interest charged on my MTF position even after I have squared off/sold it?

    Interest on your funded positions in MTF is based on the market settlement cycle. This means:

    • When you buy a stock on Monday, settlement happens on Tuesday and interest starts to be charged from Wednesday.

    STOCK X Bought on Monday

    STOCK X Settlement on Tuesday

    STOCK X Interest Charged from Wednesday

    • If you sell this stock on Thursday, sell settlement for the sale happens on Friday. So, the interest will be charged on Wednesday, Thursday and Friday.
    STOCK X Sold on Thursday           
     
    STOCK X Sell Settlement on Friday         
     
    STOCK X Interest Charged from Wednesday

    • However, if the same stock was sold on Friday, settlement happens on Monday and interest will be charged from Wednesday to Monday.
    STOCK X Sold on Friday           
     
    STOCK X Settlement on Monday         
     
    STOCK X Interest Charged from Wednesday to Monday
     
    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?