BTST possibility

Respect to all the experts,

I want to ask is BTST still possible after SEBI’s new rules effective from 31 July 2020?

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BTST is still possible, what makes you think otherwise?

dear sir , if i cant be able to sell shares what i have bought today then how BTST will be possible … lets say if i had bought 2000 shares of icici today , at price of 300 in CNC … and tomorrow price went up 10 rupee per share… 310…
can i able to sell these shares tommorrow ???

these new sebi rules sucks …and i pray btst never stops

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Yes, you will be able to sell the next day.

As explained in this post

Margin for BTST trades

If the stock is sitting in your demat account, it can be debited from your demat and given to the exchanges on the same day you sell to avoid margin requirements as explained above. But when you buy today and sell tomorrow (BTST), you still don’t have the stock in your demat yet, as it takes two days to get credited. Which means that to sell a share the immediate next day after buying, you will now need VaR+ELM margin. So if you buy Reliance today for Rs 1 lakh, you will need Rs 22,000 in your account tomorrow to be able to sell it.

One workaround for brokers like us who collect full money upfront for equity delivery trades is that, on T day, even though we debit 100% of the money from your account upfront, we report only VaR+ELM to the exchange. The next day to sell, there will be sufficient VaR+ELM to allow you to sell. So for example, if you had Rs 1 lakh with which you bought Reliance, we block and report Rs 22,000 as VaR+ELM on T day. On T+1 day, to sell Rs 1 lakh of Reliance, we will report Rs 22,000 from the remaining Rs 78,000 in your account as margin available. What this means is that we can allow BTST trades (if you have no other money in your account) on stocks where VaR+ELM is less than 50% . Since the top 1500 stocks have VaR+ELM less than 50%, this also wouldn’t be a big deal for online brokers like us who collect full money for delivery trades when taking the trade.

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Thank u dear ShubhS9

This is what I read: Funds from all sell transactions from your holdings will be available for use only on the T+2 day.

Now, even if I sell shares bought yesterday then how will I be able to buy new shares on same day if margin will be available for use after T+2 days?

NSE has made changes to that rule. If broker does early pay in, sell proceeds can be used on same day but 20% will be blocked and will be returned to you on T+2 days.

Also, things will continue as they currently are until September 1st, this rules come in effect then.

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Thank you very much sir.

In my opinion, Zerodha should come up with a final blog post explaining everything which is going to happen from 1st September 2020 (updated one) on Z-Connect.

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They must. Doubts will be cleared.

In other words what you are saying is that , if i have full money for delivery trades , i can do BTST easily , since i am keeping full money for delivery , which is enough for both buy & Sell Var+ELM right ?

Yes.

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