Penalty for selling shares from portfolio and buying back later

Can any one please tell what is the penalty that is charged for selling shares from holding and buying back later.
Assuming I sell 10 shares at 1000 and buy it back at 950.

No penalty will be charged considering you do the transactions within the same day between 9:15am - 3:30pm.

Exchange will consider such transaction as intraday short selling and not debiting the shares from your demat account.

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I get this nudge when I try to buy back the sold share. What does it mean by sale proceeds for other trade.

Short selling requires margin… but selling stock from your demat doesn’t require any margin.

If you bought back the shares you must have the required margin, otherwise margin penalty will apply.

How much is the value of shares divide by 5 is the approx margin you must have… please cross check…

Don’t do any other trade with that margin you receive after selling your holdings if you plan to buyback later on the same day.
If you used that margin to do some other intraday trade like buying/selling Nifty Fut and then buyback the stock, then you will be charged short margin penalty.

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If you’ve sold shares from holdings and use the funds received for trading in other scrips and buy back the shares, there can be peak margin penalty. No issues if you buy back the shares if you haven’t used the proceeds for trading. Please check out this article for more details.


Thank you !!

Thank you!!