With Alice Blue, you can hold MTF (Margin Trading Facility) positions for up to 365 days (1 year).
During this time, you must:
Maintain the required margin in your account
Pay daily interest on the borrowed amount
In Alice Blue, under the Margin Trading Facility (MTF), you can hold positions for up to 365 calendar days. However, if you do not square off your position within this period or fail to meet margin requirements, the following can happen:
1. Auto Square-Off After 365 Days
Alice Blue allows MTF positions to be carried for a maximum of 365 days from the date of purchase.
If you do not square off your position by the end of this period, Alice Blue will automatically square off your position on or after the 365th day, in compliance with SEBI regulations.
2. Margin Shortfall = Force Liquidation
> You are required to maintain the required margin throughout the holding period.
>If your margin falls below the minimum maintenance level due to a drop in stock price or other factors:
>You will receive a margin call.
>If not fulfilled within the specified time, Alice Blue may liquidate your position without further notice to cover the shortfall.
If your position incurs significant losses and your margin falls below the required maintenance level, Alice Blue will:
Notify you via SMS/email/notification (margin call).
Give you a chance to add funds or collateral to restore margin.
If no action is taken within the specified time, the position will be forcibly liquidated to prevent further losses.
Yes, MTF positions can be converted
Step 1: Before converting, ensure that the required margin is maintained in your account.
Step 2: Go to Portfolio and select MTF.
Step 3: Click on Release.
Step 4: Select the stocks you want to convert to CNC.
Step 5: Click on Release, then read and confirm.
Conditions for Conversion:
Maintain Full Purchase Value
You must have 100% of the total purchase value of the stock in your trading account.
Example:
If you purchased shares worth ₹1,00,000 using MTF (with margin), you must fund your account with the full ₹1,00,000 to be eligible for delivery conversion
Important Notes:
If the full value is not maintained, the conversion request will be rejected.
Conversion is irreversible — once converted to delivery, it cannot be moved back to MTF.
Ensure you have enough free cash balance in your trading account before placing the request.
