What happens if the stock I’m holding under MTF goes through a demerger?
If a stock you are holding under MTF (Margin Trading Facility) goes through a demerger, the position will not remain under MTF. It will be automatically converted to CNC.
Before converting MTF position to CNC, under MTF 100% margin requirement will be applicable check your trading account balance and make sure you have adequate funds available. If the funds are sufficient position will be get converted to CNC or else position will be get squared off.
What If?
| Scenario | What happens |
|---|
| I bought the stock under MTF before the demerger announcement | Even if the stock was originally purchased under MTF, it will be treated as CNC once the demerger takes effect. |
Last updated: 06 Apr 2026
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