Important Note: MTM (Mark-to-Market) or booked loss and charges in the MTF ledger must be settled through direct fund payment. These amounts cannot be adjusted against the collateral value.

Scenario 1: Debit in MTF Ledger with No Funded Stocks

If your MTF account has a debit balance and no funded stocks, the following actions may be taken by Navia if the debit is not cleared by the next working day after closing the final MTF positions:

a) Cash Collateral Adjustment: Funds may be transferred from the cash collateral account to the MTF ledger to cover the debit.

b) NSE CM Segment Transfer: Any available funds from the NSE CM segment may be transferred to the MTF ledger.

c) Collateral Stock Liquidation: MTF collateral stocks may be liquidated to settle unpaid charges and/or MTF trade losses.

Scenario 2: Debit in MTF Ledger with Funded Stocks

If you have funded stocks and continue using the MTF facility, and the debit is not cleared by the next working day, the following process will occur before the 10th of the month:

a) Cash Collateral Transfer: Funds will be moved from your cash collateral account to the MTF ledger to cover the unsettled amount.

b) Trading Account Adjustment: If insufficient funds are available in the cash collateral account, any credit in your normal trading account will be used to settle the debit.

c) Collateral Stock Liquidation: If there are no funds in the trading account, your stock collateral may be liquidated to cover the unsettled amount.