How does Traders pledging for Margin through investments for 0% Interest rate help brokers?

[TheGouda]

@Manu_Manjunath.K.R

I buy reliance share for rs1000 say 10 shares to keep for long term like years and years

Then there is sudden short term opportunity in reliance at price rs1500. After rs1500 rose to rs1750. I sell it, due to fifo. Rs1000 will be sold now. So long term capital gains will be calculated from rs1500 when I sell reliance say 5 years later.

Chirag, FIFO is applicable on demat account basis. So, you need to pay capital gains in this case.

For transferred shares, the FIFO logic is slightly tricky.

Console FIFO calculation Bug

We’re making the changes to accommodate FIFO logic for off market transfers. Any exit before transfer date won’t be matched with the discrepant buy entry transferred shares. We’'ll update once it is live.