How to convert MIS to CNC before square-off on Kite

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When you buy equity shares using the MIS (Margin Intraday Square-off) product code on Zerodha Kite, Zerodha’s system automatically squares off the position before the end of the trading session, typically between 3:20 PM and 3:25 PM IST, whether you are profitable or not. If you decide mid-session that you want to hold the purchased shares overnight rather than close the position, you can convert the product code from MIS to CNC (Cash and Carry) using Kite’s position conversion feature, provided you do so before 3:20 PM IST and have sufficient funds to cover the full delivery margin. This guide explains the procedure step by step.

Why this matters

The MIS product code provides margin-based leverage for intraday trades. For example, Zerodha may allow you to buy shares worth Rs 1,00,000 with only Rs 20,000 to Rs 50,000 of available funds, using the remaining amount as intraday leverage. This leverage is withdrawn at 3:20 PM IST and the position is squared off at the prevailing market price.

If you are holding a profitable MIS position and decide you want to keep the shares as a long-term holding, converting to CNC lets you do so. However, the conversion requires that your account hold the full value of the shares, not just the intraday margin, because CNC is an unlevered delivery position.

The CNC product code and MIS product code reference articles explain both products in detail.

Understanding the funds requirement

Before initiating the conversion, calculate whether you have sufficient funds:

Funds required for CNC = Quantity x Current market price of the stock

If your available balance is less than this amount, the conversion will be rejected. You have two options:

  1. Add funds immediately via UPI or net banking through the Kite funds page (funds may not reflect instantly during market hours).
  2. Convert only a partial quantity that your available balance can cover.

Step-by-step procedure

Log in to Kite before 3:20 PM IST

Open kite.zerodha.com or the Kite mobile app and sign in. Monitor the time carefully. The MIS auto square-off begins at approximately 3:20 PM IST; Zerodha’s risk management system initiates square-offs across all MIS positions in a batch, so the exact time may vary by a minute or two but is typically not later than 3:25 PM IST. Do not attempt conversion after 3:15 PM IST to leave an adequate safety margin.

On Kite web, click Portfolio in the left navigation, then Positions. The Positions screen shows two sub-tabs: Day (today’s open intraday positions) and Net (combined view). Your MIS position is listed under Day and shows the product code as MIS.

On the Kite mobile app, tap the Portfolio icon in the bottom navigation, then tap Positions.

Open the conversion panel

On Kite web: Hover over the MIS position row. An action row appears below or beside the position with buttons including Add, Exit and Convert. Click Convert. A conversion panel or modal opens.

On the Kite mobile app: Tap the MIS position row to expand the detail view. At the bottom, a Convert option appears. Tap Convert.

Select CNC as the target product

The conversion panel shows two fields:

  • Open qty: The total open quantity of the MIS position. This is the maximum quantity you can convert.
  • Product: A dropdown or segmented selector showing the current product (MIS) and the available target products. Select CNC.

Enter quantity to convert

In the Convert qty or Quantity field, enter the number of shares you want to convert. You can convert the full quantity (for a complete hold) or a partial quantity (if you only want to hold some shares overnight and let the rest be squared off, or if your funds only support a partial conversion).

Example: You bought 200 shares of a stock at Rs 500 per share using MIS. Your available balance is Rs 60,000. Full CNC value = 200 x Rs 500 = Rs 1,00,000. Since Rs 60,000 is insufficient for the full conversion, you can convert a maximum of 120 shares (120 x Rs 500 = Rs 60,000), letting the remaining 80 shares be squared off automatically.

Confirm the conversion

Click Convert or Confirm. Kite’s system performs two checks:

  1. Does the account have sufficient available balance for the converted CNC quantity?
  2. Is the conversion request received before the auto square-off deadline?

If both conditions are met, the position is converted. A confirmation message appears with the converted quantity and the updated product code.

Verify the position

Return to the Positions screen. The converted quantity now shows product code CNC. It will no longer be subject to the 3:20 PM auto square-off. After the regular session ends at 3:30 PM IST, the CNC position moves to your Holdings on the next trading day after T+1 settlement by the clearing corporation.

What can go wrong

  • Conversion rejected due to insufficient funds. The most common reason for rejection. Add funds or reduce the conversion quantity.
  • Conversion attempted after 3:20 PM IST. Kite may reject conversion requests after the auto square-off has been initiated. Always initiate conversion by 3:15 PM IST to leave a margin.
  • MIS position already being squared off. If Zerodha has already begun squaring off your MIS position due to margin shortfall (intraday margin call), conversion may not be possible. Monitor margins during the session.
  • Conversion not reflected immediately. Due to exchange confirmation latency, the Positions screen may take fifteen to thirty seconds to refresh after conversion. Do not click Convert repeatedly; wait and then refresh.

References

  1. Zerodha Support, Converting positions from MIS to CNC on Kite, support.zerodha.com.
  2. Zerodha Support, Intraday auto square-off policy, support.zerodha.com.
  3. NSE India, Intraday trading and product codes, investor guide, nseindia.com.
  4. SEBI, Circular on margin requirements for intraday and delivery trades, sebi.gov.in.

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