How to convert MTF holdings to delivery

Wed, 20 May 2026 00:00:00 +0000

To convert an MTF position to regular CNC delivery:

Conflict-of-interest disclosure. This guide is published by the WebNotes Editorial Team for informational purposes and is written independently. WebNotes operates a Zerodha account-opening referral programme, disclosed on the pages that carry the referral link; this guide does not carry it and earns no referral commission from the procedure described here.

Step-by-step procedure

Four steps per the procedure infobox.

Why convert

Reduce interest cost (no more daily interest charges).
Convert short-term position to long-term holding.
Simplify the holding (CNC is easier to track than MTF).

Cost of conversion

Pay the MTF loan principal + accrued interest.
After conversion: no further interest accrues.
Capital cost = full position value.

External references

References

Zerodha, MTF to CNC conversion, support.zerodha.com.

Scheme merger and conversion rules

Tue, 19 May 2026 00:00:00 +0000

SEBI’s scheme merger and conversion framework governs when and how AMCs can merge two existing schemes or convert a scheme from one category to another. The framework was particularly relevant during the implementation of the SEBI October 2017 categorisation , when AMCs had to consolidate overlapping schemes across the new category boundaries.

For Indian retail investors who hold units in a scheme being merged or converted, understanding the framework clarifies what to expect:

Conversion on WebNotes