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

Q1. Bought shares on Monday, 19Jun & got delivery & then sold on next Monday 26Jun. In this case, 80% of funds will be available on 26Jun or still next day on 27Jun ?

Q2. If I sell T1 holding worth 10K on 20Jun, & price came down & want to buy back. Can I do with fresh fund of 10K?

Yes. This is applicable for both the exchanges.

1 Like

If the shares are already in your demat account. Nothing changes. You will get 80% of the sale proceeds immediately. While the remaining 20% will be available the next day.

If you have funds in your account. These can be used for buying back the shares on same day.

2 Likes

I would like to request a feature that allows you to buy back the shares you sold today without requiring extra funds. This would be treated as an intraday trade, as if you sold the shares in MIS mode instead of CNC mode.

I think this feature is feasible and beneficial, even if it requires some technical modifications. It would give Zerodha a long-term advantage over other brokers who may not offer this option. @nithin

Thank you @ShubhS9 :+1:

1 Like

This will impact Retail traders a lot. Since we have limited capital, we would not be able to do btst as well as Intraday trades as most the time our capital will be blocked and it will give enough scope to the big traders to manipulate the stock. :frowning:

1 Like

T+1 settlement is going of for many days infact for year now. why is it brought forward now. Is this working in interest of special group of people or wanted to block special group of people now ?

While this seems simple, it is a complex change in our risk management system. It is not possible for now.

1 Like

One more thing , as i have understood they will block 100% funds if i sell from T1 & 20% if i sell from my demat holdings , is this correct understanding?

1 Like

Can you please explain it in easier ways for beginners like me?? Thanks in advance

Yes, this is right.

1 Like

Hi @Vikas464, this is explained above:

1 Like

Really funny , our exchanges do not have any solid mechanism to control risk or rather i say couter party default so they will block retail who deals in hard cash but would allow us retailers to pledge , deal in options & futures … but not let us deal easily in hard cash trades

2 Likes

When we sell holdings in US equities, the available margin is displayed on T1 day even though we are not allowed to trade US securities because they are settled on T+2. If a client uses funds on T1, the exchange issues a violation alert for doing so, and if the client repeats the violation, the client account is blocked for a certain amount of time. is it true?

@ShubhS9 this rule applicable for intraday equity traders ? ( buy and sell same day )

No, this is not applicable for intraday trades.

1 Like

Hi sir as per new rules what sebi have maid this will be help full for ppl who have large capital

As i am having less capital i keep shuffling on the stock and grow my capital to

at least we cant trade on the same stock for the same day is ok but we need the amount for the cnc stock which we have exited so that we can add on new stock

in a month we have hardly 21 to 22 reading session if u do this we can only trade for 10 day

so kindly if u revoke this it will be help full for small traders

thanks

Is Zerodha going to bring some upgradation for allowing Early pay In for T1 stocks? Your subscribers really need to to come up and help us get credit on the same day itself. Request you to please help us. Thanks

Sad reality but seems they just want to kill all small traders. First the huge margin requirements, even while selling and now this.

1 Like

When I buy I need 100% margin.

Now when I sell next day. Do I need margin as I don’t have shares also and no cash also I need var and elm for sale.

So will penalty will put