Starting from 9th October 2024, new rules will apply to the credit and margin utilization process for equity delivery sales. These changes aim to improve the trading experience while adhering to regulatory guidelines. Here’s what you need to know, with real-world examples for better clarity:
1. 100% Sale Proceeds Available for Trading
When you sell your equity holdings, 100% of the sale proceeds will now be credited on the same day. These proceeds can be used for trading in the Equity and F&O segments immediately.
Example:
You sell 100 shares of XYZ Ltd for ₹50,000.
You will receive the entire ₹50,000 on the same day.
This amount can be used to buy other stocks or trade in the F&O segment right away.
2. Repurchasing the Same Holding on the Same Day
If you decide to repurchase the same stock you sold on the same day, only 75% of the sale proceeds will be available for immediate use. The remaining 25% will be credited the following trading day (T+1).
Example:
You sell 100 shares of ABC Ltd for ₹40,000 in the morning.
Later that day, you decide to buy back the same shares of ABC Ltd.
Only ₹30,000 (75% of ₹40,000) will be available for the repurchase on the same day.
The remaining ₹10,000 (25%) will be available on the next trading day (T+1).
3. T1 Holdings (BTST Transactions)
For T1 holdings, which are stocks bought but not yet settled (BTST transactions), the proceeds from selling these holdings will not be available for trading on the same day. This is in line with regulatory guidelines.
Example:
You bought 100 shares of DEF Ltd yesterday.
Today, you decide to sell these shares before they are fully settled.
Although you will receive the proceeds, they will not be available for trading on the same day.
The proceeds will be credited and usable on the next trading day (T+1).
These changes are designed to ensure smoother trades while maintaining compliance with regulatory requirements. Adjust your trading strategies accordingly to avoid potential interruptions.
For more details, kindly refer to the official circular.