MTF Decoded: Buying Stocks on Your Broker's Money in India

MTF funds up to ~75% of a delivery trade; you pay ~25% margin and daily interest of roughly 9-18% p.a.

Only SEBI-approved Group 1 stocks qualify, and shares are pledged to the broker as collateral.

Interest accrues every day and is charged even on holidays, quietly eating your gains.

A margin shortfall lets the broker liquidate your shares without waiting for your call.

MTF magnifies losses as much as gains — it suits short holds, not buy-and-forget investing.

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