Question regarding credit of margin from sale of equity delivery, fno

I was reading 2 different articles about margin received from selling demat holding. According to this article, Why is full credit not being received against the sell value of the holdings? it says that 80% of margin from sale of demat holding is credited instantly and remaining 20% the next day. However, in this article, Can equity sale proceeds be used for F&O trading? the info is different. If someone sells demat holding worth 130,000 , then the credit would be 104,000. What if the haircut of 12.5% mentioned in the article. Pls clarify.

Second, if I trade with collateral margin where collateral margin is 90% and cash balance is 10%, if I trade equity future and make a loss which is more than my cash balance available, will my cash balance show negative when I square of the trade, or will it be subtracted from my available margin keeping cash balance same till the settlement. Also, within how much time do I need to bring in the cash to cover the loss to avoid a penalty? @ShubhS9

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Hey @ron94

This article was hidden. Nevertheless, to prevent any potential confusion, we have completely removed the old article. Please refer to this article : Why is full credit not being received against the sell value of the holdings?

I guess, the update from @Himalay_Sharma above clears your confusion on this.

The collateral margin cannot be used for settling losses. So any losses you incur will be debited from your cash balance itself. You can transfer funds before 11:59 PM on the same day to avoid any penalty. Explained here.

Thanks @Himalay_Sharma and @ShubhS9 . This clears things up. Also, how many times a day does the collateral margin get updated and is it at fixed times?

Collateral margin doesn’t change during the day. It is based on the previous closing price of the security pledged.