MTF(Margin Buying and selling Facility)

Hiya Zerodha Group and Fellow Merchants,

I’d like to lift a degree of confusion relating to the MTF pledge/unpledge fees and request a possible replace to the FAQ/fees web page for higher readability.

My understanding, primarily based on the Zerodha assist articles (just like the MTF FAQs), is that pledge/unpledge fees are ₹15 + GST per ISIN per request. This led me to consider that if I purchased a inventory (e.g., TATAMOTORS) a number of instances beneath MTF after which bought all my holdings of that particular inventory (ISIN) in a single sale order, I’d incur one unpledge cost for that ISIN.

Nevertheless, I not too long ago observed larger unpledge fees on my ledger. As an example, for TATAMOTORS, I used to be charged ₹53.10 (which appears to be 3 x (₹15 + 18% GST)). My ledger entry from 2025-05-07 exhibits:

MTF unpledge fees for TATAMOTORS: ₹53.10 Dr
MTF unpledge fees for BALKRISIND: ₹17.70 Dr
MTF unpledge fees for SONACOMS: ₹35.40 Dr

Upon contacting assist, I used to be knowledgeable that the fees are levied per PSN (Pledge Safety Quantity). This implies if a inventory was purchased in ‘X’ variety of separate MTF transactions (every making a separate pledge and PSN), promoting it all of sudden would nonetheless incur ‘X’ variety of unpledge fees, corresponding to every unique buy/pledge.

This “per PSN” or “per unique pledge transaction” foundation appears completely different from the “per ISIN per unpledge request” wording usually discovered on the assist pages, which could be deceptive for customers like myself who may consolidate a number of MTF purchases of the identical inventory after which promote them in a single go.

Whereas the assist workforce talked about this element could be within the account opening type, the readily accessible FAQ and fees pages are what most customers seek advice from for fast info on fees.

Request:May Zerodha please make clear this on the related assist/FAQ pages? It could be immensely useful if the reason clearly states that MTF unpledge fees are utilized for every distinct pledge occasion (PSN) that’s being unpledged, even when a number of such situations for a similar ISIN are unpledged through a single sale transaction.

An instance can be invaluable:

Instance:

Monday: Purchase 10 shares of XYZ Ltd through MTF (1st pledge occasion/PSN created). Pledge cost: ₹15 + GST.
Tuesday: Purchase 15 shares of XYZ Ltd through MTF (2nd pledge occasion/PSN created). Pledge cost: ₹15 + GST.
Wednesday: Promote all 25 shares of XYZ Ltd in a single order.
Anticipated Unpledge Prices (primarily based on new understanding): ₹15 + GST (for 1st PSN) + ₹15 + GST (for 2nd PSN) = ₹30 + GST.
(That is completely different from probably anticipating solely ₹15 + GST primarily based on “per ISIN per unpledge request”.)

This clarification with a transparent instance would forestall confusion and assist customers higher perceive the relevant fees for MTF transactions.

Thanks for contemplating this.

Regards,Dev Son