As per the latest circular from the NSE on the direct payout of securities to client demand, the authorisation process for pledging the MTF holdings will be changed effective from 8th November 2024. In line with the circular, the authorisation process for pledging the MTF holdings will now be automated.

As a result the following changes are applicable:

1. Auto-Pledge of MTF Purchases: All MTF shares will be automatically pledged. No need for authorisation via OTP.

2. Pledge Charges: No changes in DP or pledge charges. The current pledge charge is ₹12 per transaction.

For further information, please refer to the NSE circulars.

Update (12th November 2024):

This process has been rolled back and put on hold by SEBI until further notice. All buy transactions of the Margin Trading Facility (MTF) need to be authorised via OTP as usual.