How does Pay Later (MTF) to CNC Conversion work?
To convert your Pay Later (MTF) carryforward trades to CNC (delivery), follow the below steps:
- Log in to Kotak Neo and go to your open positions.
- Select the script to convert.
- Choose "Position Convert"
- Enter the quantity of shares to convert and click on “Convert to CNC”.
You need to have sufficient cash margin to convert your shares from Pay Later to CNC and only need to fulfill the difference amount. If you took a Pay Later trade worth Rs. 1000 and Rs. 250 initial margin as cash, you would need Rs. 750 additional cash margin available. In the case where even the Rs. 250 is provided via margin from shares, you would need to have the entire Rs 1000 available as additional cash margin to convert to CNC.
Note:
- Position conversion can happen only during market hours with a cut-off time at 3:20 PM on market open days
- You can only convert your carryforward Pay Later (MTF) trades to delivery (CNC)
- Initial margin used for taking the position will be freed up on T+1 day
- In case you are on any platform other than Kotak Neo like NEST Trader, ODIN, or KST, please reach out to the customer support team to help you with the conversion process