As per new regulation effective from November 7, 2024, you no longer need to authorise your MTF trades at the end of each day. It is now completely automatic.

What changed with the new regulation?

• Before November 7, 2024 - You had to manually authorise every MTF trade at the end of each trading day. If you forgot to do this, it could create complications with your positions

• After November 7, 2024 - MTF trades are automatically pledged with Central Depository Services Limited (CDSL) without any action needed from you. This means once you buy stocks using MTF, everything else happens automatically in the background

How does this benefit you?

• You don't need to remember to authorise trades every evening. Your MTF positions are secured automatically after purchase
• Since there's no manual step, you can't accidentally miss authorising a trade,
• Focus on your investment decisions rather than daily administrative tasks

What happens to your MTF trades now?

When you buy stocks using MTF, the system automatically handles the pledging process with CDSL. This ensures your positions are properly secured without any manual intervention. The shares you purchase are automatically pledged as collateral for the borrowed amount.

Your responsibilities remain:

• Monitor daily interest charges on borrowed amounts
• Plan your exit strategy for MTF positions
• Ensure sufficient margins in your account
• Convert positions to delivery or square them off as planned