After selling pledged stocks, are funds available immediately to buy another stocks?

Zerodha
1

Hi Zerodha Users,

I’ve been using Kite for the past few weeks, and I’m facing some confusion regarding the settlement process - even after going through Zerodha’s modules.

I have pledged some stocks and want to sell them to book profits and reinvest the funds into another company on the same trading day, as I expect that stock to move up intraday. However, after selling pledged shares, all the funds are credited only on a T+1 basis, not immediately.

I understand that equity settlements officially happen on T+1, but as far as I know, many platforms provide instant access to capital after selling securities. Because of this delay, I’m unable to quickly rotate my capital, which is causing a problem for my trading strategy.

Could someone please explain:

  1. Whether Zerodha offers instant credit after selling pledged shares?

  2. If not, why this restriction exists compared to other platforms?

  3. And if there’s any workaround to reinvest funds on the same day?

2

Hi @Kartik_Poddar , pledged shares can be sold directly, and the sale proceeds are made available immediately on the same trading day for taking new trades.

Upon selling, the collateral is released, freeing up margin that can be reused. However, if yu want to withdraw the cash, settlement and withdrawal still happen on T+1. Explained here.

If you need any further clarity, or if this happened recently, DM me your client ID. Will get this checked and clarified.