My buy order was rejected with the reason "Buying is blocked as this is an illiquid penny stock." Why?
Purchase orders are blocked on illiquid penny stocks since the price of such stocks is often manipulated by fraudsters. Read this blogpost to know how this can lead to significant losses.
You will need to set up TOTP for Kite login if you want to trade in such illiquid stocks. You can check how to set up the TOTP feature for your account in this article.