Give us a few more days for the chaos to settle down, we will update here.
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Good evening Nithin.
Had Some Concern Regarding New SEBI rules effective From 1st September 2020.
Do I Need To Maintain Cash Margin i.e: 20% For Buying & Selling of Stocks from my Holdings?
Is It Possible to use Stock sold to Buy other stocks on same Day?
For buying stocks you already pay full amount upfront. For selling stocks from your holdings you won’t need any margin.
Yes, you can use proceeds recieved from sale of stocks from your holdings to buy other stocks.
So In short Everything is the same For zerodha users rite?
Any other changes to Trading with Zerodha From 1st sept 2020. which i am Not aware of? please let me know.
Thank you Very Well explained…!!
Sale proceeds from holdings can be used to purchase new stocks
Like how you can currently use stock sold to buy other stocks, the same will continue to be allowed from Sep 1st 2020. By debiting your demat account and doing EPI to the exchanges by 7.30 PM on the same day as explained above, we can allow you to sell your stock holdings without any margins. Also, the stock being EPI can be considered as margin, allowing you to buy more stock from the sale proceeds.
I feel Zerodha/SEBI is not charging for this above point…
For Ex. I bought shares yesterday and sold today, a sold amount will be using to buy new stocks…
Just a Clarification Needed:
About Intraday Profits From 1st September 2020.
Assume i invest 50k and purchase Shares the same day i make a profit of 10k on the invested amount, Can i sell the shares and use the principle amount i.e: 50k Invested to buy Another share The Same Day? is it possible. excluding the profits.
Yes, you can use the principal amount, the Intraday profit you have made that you can only use once it’s settled on T+2 days in Equities and T+1 day in F&O.
just for my knowledge regarding buying & selling margin.
This SEBI Circular says that there will be a penalty if trades are allowed without sufficient VAR+ELM or 20% for stocks even on an intraday basis.
Regarding this 20% SELLING MARGIN
Though its applicable to other brokerages Can anybody explain what is this 20%.
Assuming.
I invest 50k to buy shares and I make a profit of 10k.
When I am selling the shares 20% selling marging in cash should be maintained on the invested amount (i.e: 50k) or on (invested amount + profit i.e: 50+10). Just for my knowledge can you explain…
20% of value of the stock, suppose a stock is trading at Rs. 100, brokers are mandated to collect at least 20% of that upfront ie. Rs. 20.
You don’t have to maintain any margin for selling stocks from your holdings.
Just 1 more thing to be clear
As you have said 20% the value of stock
Suppose
Say I purchase 10 shares of Reliance which is 2000 per share so how will the 20% be calculated?
20% on 2000*10 = 20,000 or 20% on d value of the stock i.e 20% only on 2000 the current value of stock?
20% of the purchase value (ie. 2000 * 10 = 20,000) it will be 4,000.
20% is for buying also or only for selling…??
See, when you are buying any stock to take delivery you are paying entire amount upfront, so you don’t have to worry about anything. Also, as I mentioned earlier, you won’t need any margins to sell stocks from your holdings.
Coming to Intraday, whenever you take position Long/Short 20% will be blocked and whenever you square-off your position that 20% will be released, no margin for squaring-off your position.
Thanks a lot for the patience & replying to my queries. Thank you do much…!! Appreciate it…
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Mis/CO margins have remain unnchanged for equity cash . Is this final or will they be reduced in the future or post 1st dec?
Reduction will start from December 1st in phased manner as explained above in main post.
I thought for cash stocks reduction will start from 1st sep and for F&O, it will start from 1st dec.