How do I avoid my MTF position being auto-squared off?

If the stock price falls and your initial margin drops below the required level, you'll need to add funds or collateral within a given duration. If you don't, your position will be auto-squared off.

Kotak Neo sends a margin shortfall intimation (via SMS/app notification) as soon as your margin falls short of the required level. You'll need to add funds or eligible collateral to cover it; if it isn't covered in time, the system squares off the position to the extent needed to restore the required margin. Under SEBI's tightened margin-collection timelines (effective April 2025), an uncleared shortfall also starts attracting a daily penalty in addition to the risk of square-off, so it's best to top up the same day the shortfall message is received.