As per SEBI guidelines, authorizing MTF Positions on the CDSL website is mandatory. This is because when a broker provides funding through MTF, they must pledge the MTF shares with CDSL. Pledging is carried out to protect the interests of the broker in case a client is unable to repay the borrowed amount.
Authorization is therefore a necessary step and is facilitated by redirecting you to the CDSL website. It is performed by the end of the day (EOD) as the broker has the exact traded shares information and can complete it with a single request.
This process takes only a few seconds, during which you need to enter the OTP sent by CDSL to authorize your order before 7.00 PM on the same day.
Terms & Conditions Apply:
RIGHTS & OBLIGATIONS OF STOCK BROKERS & CLIENTS FOR MARGIN TRADING FACILITY (MTF) - NSE & BSE