quarterly settlement prevention using liquidbees

Zerodha
1

Hi, To prevent account settlement, I want to buy liquidbees days before account settlement.
But I also want to be able to have immediate access to funds when needed.

  1. Can I sell liquibess anytime? Would all the funds be immediately available after selling them?

  2. If I hold liquidbees just for one day, would I be making losses? Can someone explain charges vs return on liquidbees please.

This is probably one of the most asked questions. Would appreciate detailed info on this.

On a side note, I don’t like this rule. It’s my money, I should have say on where it stays, not the govt. Why should crores of clients have to go through this harassment? Did bankers bribe govt.?

Thanks.

1 Like
2

No matter what we do, the Government will always have a say. We have to adapt.

Maybe a banker can answer this.

3

You can sell LIQUIDBEES anytime during the market hours. As per SEBIs upfront margin requirements, when you sell shares from holdings, you will get 80% of the sell proceeds on the same day. The remaining 20% is blocked for the day under delivery margin field and will be available from the next day. You can learn more on this here.

Brokerage for delivery trades is 0. Also, there is no STT applicable on LiquidBees, but other charges like ETT, Stamp Duty will be applicable.

1 day returns will be very miniscule. Considering the statutory charges, it might not be profitable. You can check the current returns of LiquidBees here: Nippon India ETF Nifty 1D Rate Liquid BeES: Check NAV, Portfolio & Returns | Nippon India Mutual Fund

You can learn more about Liquid ETFs here: Everything you need to know about Liquid Exchange Traded Funds (ETFs)

This is a mandatory requirement from SEBI to ensure brokers do not misuse funds and/or securities kept with them. You can check this post for more information: New Running Account Settlement Rule - Single day for clients of all stockbrokers in India