Starting Monday, October 7, 2024, 100% of the proceeds from selling holdings will be credited to your trading account and will be available for further trades, rather than just 80%.
This amount can be used for all types of trades—buying stocks or taking positions in the F&O segment.
Currently, when you sell holdings, only 80% of the sale proceeds are available on the same day for further trades. The remaining 20% is blocked as an upfront margin and can only be used for trading from the next day.
For example, if you sell 100 shares of ABC for Rs. 1,000 from your holdings, you receive only 80% of the sale proceeds, i.e., Rs. 80,000. The remaining Rs. 20,000 is available the next day. Going forward, you will receive the entire Rs. 1,00,000 immediately after selling the shares.
This was because, even if brokers executed Early Pay-in (EPI) of securities to the depository when the shares were sold, exchanges used to block 20% of the sale proceeds as upfront margin. Going forward, the exchange has decided that when EPI is done, the full 100% sale credit can be given without the need to block 20% of the sale proceeds.
The Early Pay-in mechanism allows brokers to earmark shares for debit from the demat account when the shares are sold.
Does this apply to Buy Today Sell Tomorrow (BTST) trades?
No, this does not apply to BTST trades. For BTST trades, 100% of the sale proceeds will be available for trading from the next day.
You can check the exchange circular here.