Why is a nudge displayed mentioning: "Selling this stock will affect your MTF position since you have existing holdings. If you wish to hold that MTF position, avoid selling this stock"?

When a client sells shares from regular holdings while having an open MTF buy position in the same stock (taken on the same day), the transactions are netted off at the end of the trading day. This results in no or a reduced MTF position being created.

In this case, the CNC sell order offsets the MTF buy position in the same stock. The shares bought under MTF and the shares sold from regular holdings cancel each other out. Avoid such trades to ensure that the MTF position remains unaffected.

Example scenario

1. A client takes an MTF buy position for 100 shares of ABC Ltd. at ₹500 each during the day.
2. Later that day, the client places a CNC sell order for 100 shares of ABC Ltd. from regular holdings.
3. At the end of the trading day, these two transactions are netted off. The MTF buy position for 100 shares is offset by the CNC sell order, and no MTF position is created because the buy and sell orders cancel each other out.

Selling shares from regular holdings on the same day as an MTF buy can cause adjustments. Avoid such trades to keep the MTF position unaffected. To learn more about MTF, see Margin Trading Facility (MTF) FAQs.