Lakshmishree’s Risk Management System (RMS) may liquidate your MTF holdings under the following conditions:
 

1. Pledging Not Completed on Time:
   
   
   • If you do not pledge your MTF shares within the required cutoff time, they may be squared off by RMS.
      
2. Margin Shortfall:
   
   
   • If your available margin falls below the required level, your holdings may be liquidated to recover the margin shortfall.
      
3. Mark-to-Market (MTM) Coverage Falls Below 20%:
   
   
   • If the value of your holdings drops, reducing your MTM coverage below 20%, RMS may automatically sell your stocks to cover the risk.
      

To prevent liquidation, always ensure that:

• Your pledging process is completed on time.
   
• You maintain the required margin balance in your account.
   
• You monitor stock price fluctuations to avoid sudden margin shortfalls.