New 80% margin rule

Will I have to be face penalty if I sold stocks from my holdings and bought other stocks on the same day for delivery worth 80% of the previous sold amount?

You can use the 80% sale value received to purchase other stocks, there will be no penalty.

Is this valid for mutual funds too?

When you redeem a Mutual Fund, the sale proceeds are credited by the AMC to your trading account only after settlement.

Can I use 80% of sale proceeds to buy liquid or money market mutual funds on same day without penalty? @Bhuvan @mohitmehra

To purchase mutual funds, you can use the sale proceeds from the next day onwards.

So next day I guess you mean T+1 day?
So on T+1 day - we can use only 80% or all 100% we can use to buy MF?

Yes, on T+1 day. You can use the entire sale proceeds.

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