Thanks for the clarification.
I had another question related to this topic. Given that 20% margin is blocked till the next trading day (due to the new peak margin rules) when selling holdings from demat, is it possible for Zerodha to lend that 20% money for a single day via the margin funding facility (as and when it goes live)? Maybe this facility could be exclusive for users doing a rebalancing on Smallcase so as to do away with the requirement of bringing in extra capital. After that, the user can repay the loan in full the next day as the delivery margin gets released and also pay charges for borrowing via margin funding facility for the previous day (I assume that the charges would be around Rs 28 per day per Lakh if the interest rate is similar to the LAS offering). Would margin funding be possible in this scenario?