If you have placed a cross trade transaction i.e.  a regular delivery order and an MTF order for a stock with the same ISIN, than internally below checks are done:

SCENARIO 1

  • Bought stocks via MTF 

  • Sold stock of the same ISIN from Demat holding as a regular delivery order

  • MTF qty bought < delivery quantity sold

Example:
You have 100 shares of Reliance in your Demat holdings.    

You placed a buy MTF order for 50 shares and it got executed.
Further, placed a regular sell delivery order for 70 shares which got executed. 

Now at the end of day we will perform the following actions to settle the cross trade transactions:

  1. 50 shares of MTF positions bought will be converted to equity delivery.
  2. Final settlement:
  • Net quantity bought via MTF = 0 
  • Net quantity sold as delivery  = 20 shares 

SCENARIO 2

  • Bought stocks via MTF 

  • Sold stock of the same ISIN from Demat holding as a regular delivery order

  • MTF qty bought > Delivery quantity sold

Example:
You have 100 shares of Reliance in your Demat holdings.    

You placed a buy MTF order for 50 shares and it got executed.
Further, placed a regular sell delivery order for 30 shares which got executed. 

Now at the end of day we will perform the following actions to settle the cross trade transactions:

  1. 50 shares of MTF positions bought will be converted to equity delivery.
  2. Final settlement:
  • Net quantity bought via MTF = 0
  • Net quantity bought as delivery  = 20 shares

SCENARIO 3

  • Bought stocks via equity delivery

  • Sold stock of the same ISIN via MTF

  • Equity delivery qty bought > MTF positions sold

Example:
You have 100 shares of Reliance as an MTF position.

You placed a buy equity delivery order for 50 shares and it got executed.
Further, placed a MTF sell order for 30 shares which got executed. 

Now at the end of day we will perform the following actions to settle the cross trade transactions:

  1. 30 shares of MTF positions sold will be converted to equity delivery.
  2. Final settlement:
  • Net quantity sold via MTF = 0
  • Net quantity bought as delivery  = 20 shares

SCENARIO 4

  • Bought stocks via equity delivery

  • Sold stock of the same ISIN as via MTF

  • Equity delivery qty bought < MTF positions sold

Example:
You have 100 shares of Reliance as an MTF position.    

You placed a buy equity delivery order for 50 shares and it got executed.
Further, placed a MTF sell order for 85 shares which got executed. 

Now at the end of day we will perform the following actions to settle the cross trade transactions:

  1. 50 shares bought via equity delivery will be adjusted against the 85 shares sold as MTF.
  2. Final settlement:
  • Net quantity sold via MTF = 35 shares
  • Net quantity bought as delivery  = 0