100% sale proceeds from selling holdings will be available for trading from October 7, 2024

Trading Announcements
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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 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.

46 Likes
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This is brilliant! It was causing serious problems while ‘switching’ from one stock to another.

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Seems like Zerodha got back its mojo. Kudos to the faster feature ship outs these days.

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This is a regulation change, not a feature. Kudos to them nonetheless on having an architecture that allows all clients to have it as soon as exchange announced it

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I disagree. This is a feature.

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7

@ShubhS9 This Feature only for zerodha or All Brokers ?

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Is this also applicable for ETFs and in specific Zerodha’s own LIQUIDCASE?

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All brokers, this is a change from regulators. Not sure if other brokers are implemented as of now or not but eventually they will.

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Applicable for all eq/etfs.

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Many other brokers have not implemented this yet, but Zerodha implemented it right away :grin:

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12

is it possible to do something similar for pledged MF, like sell and receive fund from broker immidiate to buy stocks. i dont mind paying interest like MTF for that advanced fund received before settlement cycle.

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Great news. What happens in case of a derivative position closure? Suppose my investment amount in option selling is 2 lakhs and profit is 50 thousand, on selling, will I get 2.5 lakhs immediately? or 2 lakhs today and the 50K profit the next day?

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@Jack_R This remains unchanged. You will receive the profits on the next trading day.

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Not possible as of now, because on MF redemption funds will hit client’s bank account, not trading account. But will explore on possibility of allowing selling mf pledge instantly.

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Does this apply to f&O as-well ? I know it mentioned in the post but the funds are received in case of f&O on t+1 day for broker itself. Please correct me if i am wrong.

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If you are trading F&O, all the blocked margins are released immediately when you square-off your position, which can be used immediately for other trades.

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Does this also apply in case of repurchase of security sold through demat. Fyers has specifically blocked 25% margin in case of repurchase of same security.

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At our end, you can fully utilize the entire sale credit without any restrictions. However, for BTST trades, 100% of the sale proceeds will be available for trading from the next day.

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@ShubhS9 @siva its applicable Equity Intraday Also ? or Only Equity Holding position ?

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The intraday margins blocked for intraday trades are released immediately once you square off. The profits of the intraday trade will be availabe only next day.

But this change is more around holdings being sold rather than intraday and FNO trading activity.

For example if you took a intraday trade in Reliance - you will need 500 rs as margins. And once you square off, the 500 rs is released immediately.

But with holding sell, say you had Reliance stock (worth rs 2000) and you sold it, earlier we would allow only allow 80% or 1600 rs for utilizing to buy stocks or trade on the same day. Now we will allow 2000rs or 100% on the same day.

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