You can't now use the proceeds from selling shares for 2 days

[nithin]

@yamit_shah

what about stocks which are not a part of 1500 stocks which have var +elm less than 50%. I.e., where the var n elm is more than 50%. How will BTST case be handled in this case? Will you allow selling such stocks today if bought yesterday?

The client will need to have margin or else you will be able to sell only after delivery. The penalty now will be on us for this, so we will not be able to even say, you can sell if you are okay to pay penalty.

[Rohan_K]

I don’t understand what SEBI is trying to achieve by doing this apart from reducing volume. Since CNC has no leverage why are they holding clients money for 2 days?

[maddy_Des]

@nithin
So I can easily buy/sell short legs of IC, spreads etc w/o any issue.
Only the premium I have paid for buying legs will remain blocked for T day and can only be used again only on next day.
But if positions are created and squared off multiple times intraday due to multiple adjustment then no such issue.

[siva]

@yamit_shah

what about stocks which are not a part of 1500 stocks which have var +elm less than 50%. I.e., where the var n elm is more than 50%. How will BTST case be handled in this case? Will you allow selling such stocks today if bought yesterday?

BTST may not be possible in these cases.

[siva]

@maddy_Des

But if positions are created and squared off multiple times intraday due to multiple adjustment then no such issue.

Yes, but profits realized intraday should not used to take new positions as those are realized only on T+1.

[ShubhS9]

@maddy_Des

Only the premium I have paid for buying legs will remain blocked for T day and can only be used again only on next day.

You can use those funds for buying other Options on T-Day itself but not to Short Options or Buy Equities.

[Rohan_K]

does any of these apply to currency fno? like if I use currency fno to close position today can I use those funds to create new positions on the same day itself?

[manas111]

Yes, i understand but you said after this new margin collection thing nothing changes for FnO intraday, except the leverage will be gone…so will that be gone from August 1st or October?

[GunjanChokshi]

Its indicate that current committee want to promote only Dabba ( Unofficial trading ) . Crazy may be after a month they will come with notifications that you have to wait till share certificate reach to your home before you can sell

[ShubhS9]

@Rohan_K

does any of these apply to currency fno? like if I use currency fno to close position today can I use those funds to create new positions on the same day itself?

Same rules apply for Currency F&O and Commodities F&O as well.

[nithin]

@Rohan_K

does any of these apply to currency fno? like if I use currency fno to close position today can I use those funds to create new positions on the same day itself?

Yeah, to all F&O, the rule is the same. Yeah, you can close futures or short options and use that margin to get into something else. If you exit from long options, you can do only long option until next day.

[nithin]

@manas111

Yes, i understand but you said after this new margin collection thing nothing changes for FnO intraday, except the leverage will be gone…so will that be gone from August 1st or October?

Ah, not sure yet. But it might go from October 1st.

[dhiren_d]

but if I am just changing LEGS then…booking ITM option and buying ATM option due to Spread n Volume…will it still affect?

[Rohan_K]

I don’t understand what exchange is trying to do by doing this? This makes a lot of strategies in fno hard to implement.

So if I buy 10 lot of USDINR Aug FUT and buy 10 lot put options and then SELL the option I can’t buy more options with the proceeds which I got from selling earlier options?

Did I interpret it right? I can still create new long option positions with new fresh capital obtained from holy sources?

[siva]

@dhiren_d

booking ITM option and buying ATM option due to Spread n Volume…will it still affect?

@Rohan_K

So if I buy 10 lot of USDINR Aug FUT and buy 10 lot put options and then SELL the option I can’t buy more options with the proceeds which I got from selling earlier options?

That is okay, but can’t use money which is realised to buy eq or take futures/short options.

[Rohan_K]

Also to avoid penalty can zerodha implement some validation in those cases? Or its hard to track the sources of fund?

[ShubhS9]

@Rohan_K

buy 10 lot put options and then SELL the option I can’t buy more options with the proceeds which I got from selling earlier options

You can buy Options from the proceeds recieved from squaring-off long Options position, you just can’t use those funds to take Short Position in Options, trade Futures or stocks.

[siva]

@Rohan_K

Also to avoid penalty can zerodha implement some validation in those cases? Or its hard to track the sources of fund?

We have to otherwise brokers are penalized and they can’t pass it to clients.

[SachinSingh]

With regards to F & O, just so that it’s fully clear:

1. Intraday: No changes apart from no leverage after some time.

2. Overnight positional:
   a) Short side: No changes. If you square off, can utilize funds anywhere.
   b) Long side: If square off, can use it only to buy other options on same day, not trade futures, short options, or buy stocks.

@Siva, is my understanding correct here?

[manas111]

You put it more clearly than original poster