Discontinuation of credit on sale of T1 holdings w.e.f 19th June 2023

Trading Announcements
1

Currently, when you sell shares that were bought today the next day (also known as BTST trade), you receive 80% of the sale proceeds on the same day, which can be used for further trades.

Starting Monday, 19th June 2023, the proceeds received from selling T1 shares (shares that are bought today and are sold on the next day or before delivery of the shares) will not be available for trading on the same day.

This change is due to recent guidelines by NSE, which stops all brokers from giving sale proceeds for T1 shares without doing an Early pay-in (EPI) of shares. To allow the use of sale proceeds for further trades, the shares need to be earmarked for settlement through a process called Early Pay-In (EPI). Since the EPI of securities is not possible for T1 holdings, because they are unsettled, credit against such sales cannot be used for further trades.

Once the EPI of T1 stocks is carried out, the proceeds will be available for trading from T+1 day.

For example; if you buy 100 shares of Reliance on Monday and sell them the next day:

Day Action Earlier From 19th June 2023
Tuesday Sell 100 shares of Reliance 80% of the sale proceeds were credited on the same day. While remaining 20% on T+1 day. Entire sale proceeds will be credited to your account on T+1 day

This does not affect the way sale proceeds are credited for shares that are already credited to your demat account; for this, you will continue to receive 80% of the sale proceeds. Also, note that the fund withdrawal timeline remains the same.

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2

Noted. But it could have beenapplied to X XT M etal group shares. NSE needs to review its guidelines in the near future.

3

Is this also applicable to the following scenario. I buy a lot (25 shares) of Banknifty 22nd June 44000 CE on Monday and sell the same on Monday then will I get the amount back on Tuesday? Please do let me know

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4

But not every broker has this rule for now. Is there any deadline for all brokers to implement this rule?

Also, this is just a guideline right, not a rule? So do brokers have an option not to implement it? If yes, please don’t! Or just give less credit for T1 holdings (instead of 80%, maybe 50%??).

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5

Does this include Equity or applicable for FNO also ?

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6

Just to clarify! This will not be applicable to f&o overnight position right?

7

pls clarify as to - what is the protocol of delivery - 24 hours from trade time or is there any specific timeline for t! shares transfer.

Do we have to keep checking email for transfer confirmation and once we get it, the fund should be in the account? Right?

8

Proceeds = Money ?

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9

This is not applicable for F&O trades. Only for equity trades.

10

Only equity. This is not applicable for the F&O segment.

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11

No, Shree.

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12

Yes money/funds to be credited from the sale of T1 holdings.

For example:

  1. On Monday (Trade day), Mr A purchased Reliance shares worth ₹10,000.
  2. On Tuesday (T1), Mr A sold these shares for the same amount.
  3. Earlier, 80% of the ₹10,000 (i.e., ₹8,000) would have been released for him to immediately place other trades or buy back the same stock after selling the T1 holdings.
  4. However, due to the new changes, funds will not be released on Tuesday. Instead, 100% of the funds, i.e., ₹10,000, will be released on Wednesday.

This is explained in detail here Why is the credit from selling T1 holdings unavailable for use on the same day?

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14

Seems like the impact of the change will be huge and it will suck liquidity out of the market. So if you are an Intraday + BTST trader, as per your example, you have no money to trade Intraday on Tuesday. And this also implies you cannot take fresh BTST on Tuesday - directly reducing the working days for such traders to half.

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15

The Government may lose a considerable amount of revenue from STT. It will be interesting to see the STT revenue this year. Bad update for everyone, I think.

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16

The circular is from Nse, does it apply to Bse too?

17

Can anyone explain the purpose of this rule? Why is this from NSE, and not BSE / SEBI?

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18

Ok got it that these funds would NOT BE AVAILABLE TO TRADE WITH but they would be shown as money available as delivery margin, right ?

19

Currently this is not possible. We’ll be making this available in future updates.

21

@ShubhS9
Today I bought the shares worth Rs 10000 and I am selling the shares on Monday 19th June. The sell credit of Rs 80% will be available to trade on 19th or 20th June?

22

Entire sale proceeds will be available for trading on the 20th June.