Query on BE Share

It is known that there should be no Intraday activity on BE type shares on NSE.

But is it okay to sell a BE share from our holdings and rebuy the share on the same day in CNC… ?

( say for example, Booking profit in BE share on 23 /04/2021 from holdings and buying it back in CNC on same day ( 23/04/2021 ).

I have tried this -

Firstly, you will have only 80% of the released funds made available for buying on the same day. Rest will be blocked under delivery margin and available the next day. Secondly, if it is non-BE stocks buy average does not get impacted and it feels as if it is a intraday order. However, in case of BE stocks (those in T2T category), it follows FIFO. So you get the buy average of the price you bought today.

So, if you have funds, I think - Yes, it is possible to sell your holdings and buy it on the same day with caveat of avg. buy price being the price you bought the shares on today.

Hi thanks for replying.

What is caveat ?

So the crux is no penalty will be levied right? For selling the BE share and buying it back in CNC On the same day???

  • only 80% funds will be made available
  • buy average price will be price of today
  • to my understanding, yeah. it won’t be considered intraday and hence no penalty.

But you should wait for someone from zerodha to confirm.

Note: we are only talking about the action of you selling from your holdings and buying it again - the same day.

Okay. Thanks abhiwin.
Are you aware of the penalty imposed on BE share for intraday activity?
( Just to know about that)

Zerodha folks, help me in knowing this.

You can sell the shares and buy again the same day. Though, this wouldn’t be considered as an intraday trade. You can check this article to learn more.

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Sir, Do BSE X group shares also follows the same procedure like NSE BE group share ?

Btw, BSE GROUP X shares also follows FIFO MECHANISM like NSE BE group shares.?