Today, when you sell non-pledged shares lying in your Demat account, you can use 80% of the value of such sold shares to take further positions on T day itself. The entire 100% of the sale proceeds become available from T+1 day onwards.
However, due to regulatory changes , this facility of using 80% of value of the sold non-pledged shares will NOT be made available to you immediately (i.e. on T day) with effect from May 30, 2023. The entire 100% of the sale proceeds will be credited to your account on T+1, which is the normal settlement cycle for Equity segment.
I got the above from Icici Direct. Currently, when I sell, I could use the sale proceeds to buy something else, but it seems this cannot be done in future.
With Icici Direct, we have something called instant ATM, click on a button, when you sell, 80% or so amount will be credited to my bank account in 5 minutes However, this option is only for few select shares, not available for ETFs I guess.