According to exchange guidelines, Margins utilised for MTF & Cash cannot be inter-used. Simplifying this, incase you buy a MTF position worth ₹10,000, and now you exit the position, the sell value, will be credited back to your MTF fund detail page.
This can only be utilised further for MTF trades only.
Withdrawal for MTF Margin and Cash Margin is separate.
Understanding the fund detail screen for MTF ->
MTF Available Limit: This is the balance left, with which you can take fresh MTF Positions.
MTF Opening Balance: This is your MTF Margin used + MTF available limit
MTF Withdrawal limit: This is the cash you can withdraw from your MTF Funds
MTF Margin Blocked: This is the margin used by you for your MTF Trades
CTD MTF Margin Blocked: This is the margin blocked on T-day due to conversion of positions from MTF to Delivery
MTF Used Pledge Benefit: This is the collateral margin used for MTF positions
MTF PNL: This is the margin blocked due to losses in open position
MTF Equity Credit for Sale: This is the limit release on sell of MTF positions