If I buy 100 shares of X Company under MTF and then sell the same under CNC product, will my positions be squared off?

In the first instance, you will not be able to sell stocks under CNC if you do not hold them in your demat account. If at all you sell them under CNC holing the stock in the demat account, and buy it in MTF, your holdings will be taken out for delivery from your demat account and you will be delivered stock bought under MTF.

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