Shares sold on ex buyback date

[ShubhS9]

Why we do EPI has been explained here:

SEBI mandated the collection of upfront margins in the Equity segment from the 1st of September 2020, this meant that if someone did not bring in adequate margins, a penalty would be levied. While this didn’t have an impact on purchase trades (since we would ask for 100% of the purchase value upfront), we did have to change the way we settle sell trades. We had two options:

(a) Ask the client to bring in money if they wanted to sell stock (20% of the value)
(b) Debit stocks the day that the sale was made and do an Early Payin (EPI) to the Exchange, which gave two benefits:

 (i) the need for upfront margin wasn't required (as stated in point a above)
 (ii) the credit from sale could be allowed to carry out other trades

We opted for (b) and this is the reason it’s imperative that we debit the stock on the same day.

And as explained above to your earlier query regarding blocking the margin and debiting shares later.

@ShubhS9

In this case, The stockbroker will have to collect cash margin to allow sale without EPI. This means maintaining two parallel systems of delivery everyday which can cause disruptions. The simplest way to make sure you can participate in a buyback is to sell after the record date.