In which cases does the Pay Later position remains intact?

Position in Pay later (MTF) will remain intact in below scenarios:

  1. Clients has to pledge the stocks purchased on T day latest by T+1 day, 2:00 PM on the link received from NSDL
  2. Minimum Margin needs to be maintained by the users in the form of cash or collateral

Example: Mr. A bought stocks worth Rs.1,00,000 by paying 25% margin in ABC limited which is Rs.25,000. After few days the stock starts to fall where the value of Rs.1 lac goes down to Rs.90,000 hence a difference of Rs.10,000 is now created. The broker will now give margin shortfall call via SMS to the user, incase the user fails to maintain the margin the system will sell the stocks to the extent of margin available i.e. in this case stocks upto 40K will be liquidated.