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 Conversion"
- 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) and not shares purchased on the same day
- Initial margin used for taking the position will be freed up on T+1 day
- In case you convert a Pay later share to CNC and sell it on the same day, you will not get the sell benefit for it on that trading day. You will receive the benefit on T+1 day
- Margin interest for your Pay later position will be charged for the day you initiate conversion as well. Interest will not be charged on your Pay later position from T+1 day
- NEST Trader: If you are using NEST Trader or if you have a dealer mapped to you, you can convert your Pay later (MTF) positions to CNC through the Position window (F11). Only carry-forward positions should be converted by selecting the Netwise/Overall option. Daywise/detail option, while available will still be treated at MTF positions on the next day. Please ensure to use correct options to ensure accurate conversion. Note that position conversion requests placed on market open days till 3:20 PM will only be considered.
- ODIN Platform: If you are on the ODIN platform, please reach out to the customer support team to help you with converting your Pay later (MTF) positions to CNC.