If I sell a normal share, I should get 80% margin for further buying.
If I want to use that 80% to buy LTASM stage 4 and T2T share, can I do it ?
Or, I need to provide fresh new cash for buying this share ?
Hey @vkhaitan
Yes, you can utilize the received funds for purchasing the stock. No extra fresh cash is needed.
I have been informed by another broker that T2T stock requires upfront cash. Since stock sell doesn’t give you cash immediately, but only 80% margin(margin is not cash) , you would need to provide cash. This is rule of SEBI and broker can’t do anything.
So are they wrong ? is this understanding of rule of SEBI incorrect ?
In Zerodha, the EPI takes place instantly in the backend, enabling you to purchase stocks right away. Whereas, with another broker, this process likely occurs by the end of the day.
1 Like
I have another question regarding buying of stock for delivery.
Zerodha requires actual cash available for stocks to be bought. However, upfron margin required for normal stock is not 100%. That is only applicable for T2T category.
Why doesn’t zerodha allow stocks be bought via eq margin for delivery ? Since settlement anyway happens at T+1, so final cash can always be given by night or T+1. This is what happens at some other brokers.
Do you need upfront cash because of Early pay-in ?
Ahh missed replying this 
This policy follows our internal Risk Management System. However, it may differ among different brokers.