Selling Liquidbees and Buying Niftybees / ETFs as per New SEBI rules

Hi Team,

I am having a query here. Would like to know how much margin/amount I need to keep in my trading account if I want to buy/accumulate niftybees whenever there is open opportunity. Currently, I was buying niftybees and selling liquidbees after buy order executed. For Eg. Buying Rs. 1000 niftybees and selling Rs. 1000 liquidbees. Note. Selling Liquidbees from my holdings as per requirements respect to buying amount. This is for Equity Delivery or Long Term Investment. Please advise if i need to take care of as per new sebi rules. Thanks and waiting for your response.

New rules will be implemented on 1st September.

They have made some changes to first circular, you can use Sell proceeds on same day but 20% will be blocked, which will be returned to you on T+2 days.

Thanks Team. Didn’t get about 20% block? Can you please advise with an example?

Suppose you Sell holdings worth 100,000, 20% of that ie. 20,000 will be blocked and will be returned to you on T+2 days.

Thanks ShubhS9. Suppose I am having 10K in my trading account and I want to buy Niftybees or ETF of Rs. 1000 (Eg. CMP for Niftybees is 118, 118 × 9 Qty = 1062). I placed an order in CNC for buying niftybees and trade gets executed. Now Rs. 1062 gets deducted from my trading account immediately and shows in Margin used. Further, If I sell liquidbees holdings on same day of 1 unit (Rs. 1000), the margin used amount will be shown as Rs. 62 and will compensate/adjusted after market hours or day closure. Ofcourse liquidbees units will be deducted after T+2 days. So, can i continue with same way that I doing currently or I need to change my way of investing? I am understanding that I need to keep more amount in trading account than what i am buying, Correct me if I am wrong here?

does that mean i i sell stock worth rs 1 lakh , i can use 80000 of that margin to buy other stock or take FnO position

You can use 80,000 to buy other stocks but trading F&O with unsettled funds will result in margin shortfall (even now trading F&O with unsettled funds results in margin shortfall)


but interest wouldnot be charged in both scenario, correct? i mean thing would remain same as it is now.

From September 1st, When you will sell LiquidBees worth 1000 you will only be able to use 800 to purchase stocks on the same day.

this will result in penalty charged by the exchange or interest charged by the broker ?

Buying stocks, No. Taking position in F&O with unsettled funds will result in margin shortfall and there will be penalties levied by exchange.

This will result in margin shortfall penalty which is charged by the exchange.

So in this case, Starting Sep 1, 2020, Margin used will be shown as Rs. 262 (Buy Niftybees = 1062 - Sell Liquidbees worth Rs. 1000 with 20% block i.e. 800) instead of Rs. 62 in current scenario and that Rs. 200 will be credited back to my trading account in T+2 day. Correct me if wrong?

There has been clarification regarding this, you will be able to use all the proceeds from sale of your holdings on same day.

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Great and Many Thanks for your quick response.