What will happen if the stock I bought under MTF moves out of funded stock list?

Some stocks may move out of the eligibility of being a funded stocks and this might occur when the VaR margin changes/ the stock moves out of EQ to BE or out of Group 1 category etc.,

Every stock has a VAR margin attached to it and it differs from stock to stock and from time to time. The Exchange releases the VAR Margin details frequently for RMS purpose. Wherever, the VAR is 100%, it implies that the entire value of purchase has to be paid to the exchange and not a portion of it can be funded. 

Thus, if you had bought a stock under MTF and suddenly one day, the VAR of that stock moved up to 100% or it moved out of eligibility category, you will then  be required to make full payment of purchase value of that stock.  We will subsequently release it to your demat account as a free holding. This is also one type of liquidation. Alternatively, you may sell them to bring down your obligation.

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