Arihant Capital MTF Review

• Get up to 4x margin with Arihant Capital MTF: MTF facility allows investors to increase their purchasing power by funding a portion of the trade value by the broker.
• Lower upfront investment required: Investors need to pay only the initial margin, while the remaining amount is funded by Arihant Capital.
• Nominal interest on MTF: Interest is charged at 0.05% per day on the funded amount only.
• Wide range of eligible stocks: Margin funding is available on a curated list of 1000+ exchange-approved stocks selected by Arihant Capital.
• Delivery-based trades (No intraday): All MTF trades are treated as delivery transactions, allowing investors to hold stocks beyond intraday sessions.
• MTF into Delivery conversion: Investors can convert MTF positions into delivery by repaying the funded amount, eliminating further interest costs.
• Place MTF order on ArihantPlus app: Investors can place MTF order directly through the app or web trading platform seamlessly.
• Easy pledge process and real-time margin monitoring: Separate MTF Ledger allows investors to track margin utilisation, funding levels, and risk exposure in real time.
• No Fixed Holding Period: MTF positions can be carried forward without a predefined tenure.
• Place AMO order: If you forget to place your oder during market hours and want to take on an investment opportunity, use MTF after-market order (AMO) and the app will automatically send your order to exchange when the market opens.
• MTF Funding will be available for a maximum of 90 days.

To buy stocks using MTF on the Arihant Plus app:

1. Log in to the Arihant Plus app.
2. Search for any stock under the watchlist.
3. Click on the Buy button.
4. Choose the MTF product option from the order options on top on the order pad.
5. Enter details like price, quantity and order type (Market/Limit).
6. Tap buy with the MTF button and confirm your order.
7. Once executed, it will be visible in the Positions tab (separately tagged as MTF).
8. Check your MTF purchases under Holdings on the app, clearly tagged in purple.

Keep in mind:

• MTF positions are intended for delivery trades, not intraday.
• You can hold MTF shares even after a few days — but interest keeps accruing until you close the position.
• If you sell part of your MTF holdings, you can partially close the loan, and interest will be recalculated.

How Arihant Capital MTF Works?

Under the Arihant Capital Margin Trading Facility:

1. You select eligible stocks approved for MTF.
2. You pay the initial margin (cash component).
3. Arihant Capital funds the remaining amount.
4. Stocks are pledged in favour of Arihant Capital.
5. Interest is charged on the funded amount until you square off or repay.

Suppose you want to buy shares of a company worth Rs 40,000.

• In a normal delivery order, you must pay the full Rs 40,000 upfront.
• With an MTF order, you can pay only Rs 10,000, while the remaining Rs 30,000 is funded as an MTF loan by Arihant Capital.

The MTF position can be carried forward as long as (up to 90 days) margin and maintenance requirements are met.

MTF Eligibility – Who can use MTF?

To use MTF on ArihantPlus:

• You must have an active Arihant trading account.
• MTF must be activated on your account.

Note: NRIs may not be eligible for MTF in some cases.

How to activate Arihant Capital MTF?

You can activate the MTF facility by signing the MTF agreement while opening your trading account.

However, if you did not sign earlier, you can request MTF activation later via the ReKYC process or contact customer support at contactus@arihantcapital.com.

Once your MTF request is approved, it will be activated from the next trading day.

The Arihant MTF interest rate is charged only on the funded amount (not on the full trade value). The broker charges a nominal interest rate of 18% per annum on the outstanding amount.

• Interest on MTF at 0.05% per day is charged.
• MTF interest is charged from T+2 days until the time funds are in use.
• Charged only for the number of days the position is held.
• Rates may vary based on market conditions and client profile.

Arihant Capital MTF Leverage & Margin

• Leverage depends on the stock category
• Typically ranges from 2x to 4x
• Margin requirements are based on: Stock volatility, Exchange norms and Arihant Capital risk policy

High-quality large-cap stocks generally get better leverage.

Arihant Capital MTF Pledging & Unpledging Charges

Once you place an MTF order, you must pledge the securities bought as collateral. Arihant Capital charges a nominal fee of Rs 49+ GST for pledging and Rs 20 + GST for unpledging charges.

Additionally, the broker charges a lower of Rs 20/order or 0.03% brokerage fee on MTF orders.

• Lower upfront capital requirement
• Increased buying power with margin/leverage
• Ability to hold delivery positions with leverage
• Daily interest calculation (pay only for usage)
• Suitable for high-conviction equity strategies

• Higher losses due to leverage
• Interest cost reduces net returns
• Margin calls during volatile markets
• Not suitable for beginners or low-risk investors

Arihant Capital MTF (Margin Trading Facility) offers investors a structured way to enhance their market exposure by funding stock purchases with partial capital. With leverage of up to 4x, interest charged only on the funded amount, and access to a wide universe of exchange-approved stocks, the facility helps optimize capital usage while enabling delivery-based investing for up to 90 days.

However, while MTF can amplify gains, it also increases risk due to leverage, interest costs, and potential margin calls during volatile market conditions. Investors should use the facility selectively, focusing on high-conviction stocks and maintaining adequate margins to avoid forced square-offs.

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