As per SEBI guidelines, it is mandatory to authorize MTF Positions on the CDSL website.

This is because when a broker provides funding through MTF, they need to pledge the MTF  shares with CDSL. Pledging is done to protect the interest of the broker, in case a client is unable to repay the borrowed amount. 

Hence, authorization is mandatory and is done by redirecting you to the CDSL website. Also it is done by EOD, because the broker knows the exact traded shares and can be done in a single request.

This will only take a few seconds where you need to type in the OTP sent by CDSL to authorize your order before 9:30 PM on the same day.