Do I need to manually repay the money borrowed under MTF?

No, you don’t need to transfer funds separately. Repayment is automatically adjusted when you square off your MTF positions.

How does the repayment mechanism work?

The shares you purchase via MTF appear under the Positions tab (not Holdings). Once you exit or sell those positions, the borrowed funds are recovered automatically, and any balance is debited or credited to your account. This is how money returns for MTF works in practice.

How long can I hold MTF positions before repayment?

You can keep MTF positions until informed by Upstox for liquidation or conversion. On intimation if you don’t close or convert the position within the intimated period, Upstox will automatically square them off and recover the borrowed funds. So, if you can book a profit during the period and square your position, no further action is required. In case you fail to square off the position, the Upstox system will do it, irrespective of whether you are in profit or sustaining a loss on the position.

How does repayment on MTF work?

Suppose you buy shares worth ₹4 lakh, using ₹1 lakh of your own funds and ₹3 lakh borrowed via MTF. When you sell these shares, Upstox automatically adjusts and recovers the borrowed ₹3 lakh.

What are the key takeaways for investors and risk factors when using MTF on Upstox?

Repayment of borrowed money under MTF is simple and seamless. Just ensure you exit positions within the permitted time, and Upstox handles the settlement automatically. However, you should be concerned about the costs, interest, penalties, and other financial factors while using MTF on Upstox.