Most likely answer is no but I would still like to ask if any broker give interest on margin money?
A broker’s business is to permit/facilitate its clients to trade on the exchange. He is not supposed to use your money for any benefit of his own. So any money you leave in the account is no benefit for him. Hence you will not get interest from any broker. The only way you may benefit from this meagre interest(3.5%) is if you have a 3 in 1 account with a broker like ICICI direct etc. But then you will be paying a brokerage which will be way higher than this. Better suggestion is to keep idle money in Liquidbees or Liquid Mutual funds.
i am aware of liquid mutual funds but not about liquid bees can you give me couple of examples of liquidbees
You can refer to this link.
But most brokerages(even discount) do use or money for other purposes like giving clients extra margin intraday using the money in pool account
That used to be a major source of revenue for most brokers till last year, when the regulators put out a circular explicitly telling the brokers not to do this with client money.
Do you have the link for that?