Could you please prioritize this item and also let us know when can we expect this change available for users.
Hello Zerodha Team and Fellow Traders,
I’d like to raise a point of confusion regarding the MTF pledge/unpledge charges and request a potential update to the FAQ/charges page for better clarity.
My understanding, based on the Zerodha support articles (like the MTF FAQs), is that pledge/unpledge charges are ₹15 + GST per ISIN per request. This led me to believe that if I bought a stock (e.g., TATAMOTORS) multiple times under MTF and then sold all my holdings of that specific stock (ISIN) in a single sale order, I would incur one unpledge charge for that ISIN.
However, I recently noticed higher unpledge charges on my ledger. For instance, for TATAMOTORS, I was charged ₹53.10 (which seems to be 3 x (₹15 + 18% GST)). My ledger entry from 2025-05-07 shows:
- MTF unpledge charges for TATAMOTORS: ₹53.10 Dr
- MTF unpledge charges for BALKRISIND: ₹17.70 Dr
- MTF unpledge charges for SONACOMS: ₹35.40 Dr
Upon contacting support, I was informed that the charges are levied per PSN (Pledge Security Number). This means if a stock was bought in ‘X’ number of separate MTF transactions (each creating a separate pledge and PSN), selling it all at once would still incur ‘X’ number of unpledge charges, corresponding to each original purchase/pledge.
This “per PSN” or “per original pledge transaction” basis seems different from the “per ISIN per unpledge request” wording often found on the support pages, which can be misleading for users like myself who might consolidate multiple MTF purchases of the same stock and then sell them in one go.
While the support team mentioned this detail might be in the account opening form, the readily accessible FAQ and charges pages are what most users refer to for quick information on charges.
Request:
Could Zerodha please clarify this on the relevant support/FAQ pages? It would be immensely helpful if the explanation clearly states that MTF unpledge charges are applied for each distinct pledge instance (PSN) that is being unpledged, even if multiple such instances for the same ISIN are unpledged via a single sale transaction.
An example would be invaluable:
- Example:
- Monday: Buy 10 shares of XYZ Ltd via MTF (1st pledge instance/PSN created). Pledge charge: ₹15 + GST.
- Tuesday: Buy 15 shares of XYZ Ltd via MTF (2nd pledge instance/PSN created). Pledge charge: ₹15 + GST.
- Wednesday: Sell all 25 shares of XYZ Ltd in a single order.
- Expected Unpledge Charges (based on new understanding): ₹15 + GST (for 1st PSN) + ₹15 + GST (for 2nd PSN) = ₹30 + GST.
- (This is different from potentially expecting only ₹15 + GST based on “per ISIN per unpledge request”.)
This clarification with a clear example would prevent confusion and help users better understand the applicable charges for MTF transactions.
Thank you for considering this.
Regards,
Dev Son
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Yesterday i also noticed this.
Not at all happy with these people for so many illogical restrictions and unimaginable rules which dont help retailers.
I dont understand why they restrict to buy MTF when a Sell MTF transaction happens on same day.
Yes, its linked to CDSL. I had faced the same issue with another broker once. They clarified it similarly. Experts from zerodha can better answer this.
@siva is there any plan for MTF positions initial margin can be utilised from pledged collateral margin.
Will take some time for this.
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Even if purchased on same day vide different orders? It will be 15x3
No, it will be treated as one only, 15 only in this case.
Did any one notice the double unpledge charges after 1st May 2025?
Prior to 1st May, Zerodha was charging combined pledge and unpledge charge 35.4 Rs. Per position.
If you had MTF position purchased before 1st May the pledge charge levied is 35.4
If you sell that position after or on 1st May there is additional unpledge charge 17.7 levied for that position.
What you mean by double? I have explained above if multiple buys are involved in MTF them multiple unpledge charges will be levied when you sold position.
@siva this is another issue.
Prior to 1st May, 2025. pledge and unpledge charges levied in single transaction on the day of purchase.
After that pledge and unpledge charges separated.
Have a look at screenshot.
For MTF position entered prior to 1st May, pledge+unpledge charges already deducted on day of purchase.
When I sold those positions after 1st May there is another unpledge charge levied.
Could you please DM your user ID, we’ll get it checked.
@siva - Dear Zerodha, please assist in the below query
If we buy MTF stocks and place GTT on that , will same day GTT sell be allowed to be placed and same day if GTT is triggered when MTF stock falls, will that order be executed (consider GTT price is met in exchange) / or in other words intraday same day sell for Long MTF stock is allowed if stock is going in loss
It is allowed, you can try it out maybe by placing 1 share of some less priced stock.
what is the meaning of below option in ATO mtf order? Could you please explain with an example? @Ragavendran_M @siva
@siva - Dear Zerodha, thanks for this yes I tried its working, only thing please clarify
Q1) Suppose i buy shares in MTF where leverage is given due to MTF and I sell these same day- then these technically becomes intraday margin trade in equity
Q2) Cant Zerodha provide choosing the MTF leverage also e.g. if a stock in MTF allows 4x cant we take 2x , or is it because of the backend exchange rules etc that MTF leverage cant be fixed
If you have nifty future long and creating ATO to sell it, then it show margin required as 2.l lakh as that is the margin required to trade in 1 lot of nifty, but in this case as user has already has 1 lot of nifty long and he/she is exiting it no margin is required, so a user can see how much margin is required to take that ATO trade with considering existing position.
This is not relevant in MTF or equity buy. I hope you got it.