Almost all online brokerage firms today have POA on demat, so ideally when selling shares, no margin will be required. But wherever POA is not there (all our new accounts are non-POA accounts and we will soon give an option for our POA accounts to switch to the non-POA as well) the brokerage firm can do an early pay-in of securities to avoid needing to ask margin from the customer selling stocks from holdings. By early pay-in I mean, the broker can move shares from client demat to the exchanges on the same day instead of on the settlement day i.e T+2.
@siva , referring to Nithin’s Post , how will early pay-in work if I buy shares today and sell tomorrow? I will not have received shares in my demat account till T+2.