Sell holding and buy back on same day at lower price

[ShubhS9]

@curiousvi

Let’s say I have zero balance/funds in my account and I sell 100 shares from my holding from demat. As long as I don’t use selling credit for any other trades and just buyback the same holding - same qty- 100 shares - it will be just traded as intraday trade correct?- can there be any possibility of margin penalty in such case? I repeat I won’t use selling credit for anything other than squaring off(buy back same shares)

Answered here:

Sell holding and buy back on same day at for profit - intraday / margin penalty possible?

If you haven’t used the proceeds for intraday trades and buy back the shares, there won’t be peak margin penalty. Also, you will not be able to buy all the shares sold, as you only receive 80% of the funds and don’t have any other funds in the account. The remaining 20% are blocked under delivery margin field for the day and will be available from the next day onwards.