Selling before T + 2 is complete

@ShubhS9 - As per new SEBI rules - can the shares bought and not yet delivered (T+2 not completed) be sold before delivery?

Yes, BTST is possible unless stocks are compulsory to delivery category.

How to know if it is in compulsory to delivery category - will the kite app allow to sell - or it will throw error?

Yeah, while buying only kite show it as nudge, also few stocks only fall under this category.

You can refer to this support page -

Trade to trade stocks are not allowed to be traded intraday. If a stock is purchased it can only be sold after the T+2 settlement happens. If you try selling the shares the same day, or before the shares are in your DEMAT account, your order will be rejected.

If you have a ‘trade to trade’ stock in your holding and you sell it, but buy it back it on the same day, this will not be treated as an intraday trade.

The following series on NSE and BSE are trade-to-trade stocks:

  • ’BE’ series on NSE
  • ’BT’ series on NSE
  • ’BZ’ series on NSE
  • ’T’ group on BSE
  • ’XT’ group on BSE
  • ’Z’ group on BSE
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Thanks for the info - specifically need to sell Majesco (it is EQ series) - to get out of the trade

@siva / @Prayag - Also need to know - would there be a situation wherein I don’t get delivery due to which after I sell I am not able to give delivery - Believe Majesco is going towards lower circuit only hence should not have any issues in getting delivery for my order.

Short Delivery is one of the risks associated with BTST. You can learn all about Short Delivery here.

@ShubhS9 - Yes know about that very well :slightly_smiling_face: - But anyways short delivery will happen for my seller first rt? at T+2 and will be settled maximum T+3 rt? Hence my delivery to a buyer should not get affected rt? bcos I have the 1 day hedge rt?

T+3 for seller will be T+2 for you, and on that there there will be no shares in your Demat account to deliver.

Yes it is a risk - then will take a call to sell in T+1 or T+2 - today being T - don’t know why early payin is not followed then it can be settled in T or max T+1.

Also one more question since the maximum margin (share cost) has already been paid - should not have any margin penalty rt?
Only 20% shall be blocked rt and settled after delivery?

Pls provide details

The settlement cycle is T+2 days, we at Zerodha do follow EPI but processes are different at other brokers.

In case of Short Delivery, value of shares short sold along with extra 20% will be blocked.

Let’s us set aside short delivery case - In general I have paid in full for the shares bought now before delivery I am selling then only 20% will be blocked rt? - Also is it the same for Majesco also which shows VAR Margin as 18.17%.

Right, when you sell shares from your T:1 holdings or Demat account, 20% of the sale proceeds will be blocked for the day, this will be available the next day.

If I were to sell shares bought on monday on tuesday and on wednesday i realize i am a victim of short delivery and have to now have deliver on thursday.

So in this case Auction would anyways be done on Wednesday at 2.30 pm and i would receive credit by thursday morning would not i be able to provide delivery for the same?

So why would should there be a risk in BTST?

How many broker follow EPI ? I think majority of trading volume done by online brokers (Market Share).
When we can expect this T+2 days settlement will be reduced to T+1 day ?