You cannot use the credit from selling T1 holdings (Buy Today Sell Tomorrow [BTST] trades) on the same day due to regulatory requirements (PDF). The regulations state that you can only use credit from selling holdings once the Early Pay-In (EPI) process is completed.
When you sell T1 holdings, the EPI process cannot begin until your shares settle in your demat account. Therefore, you can only use proceeds from selling T1 holdings from the next trading day when your shares are settled.
Example scenario
- On Monday (Trade day), you purchase Reliance shares worth ₹10,000.
- On Tuesday (T1), you sell these shares for the same amount.
- Your funds will not be released on Tuesday. Instead, 100% of the funds (₹10,000) will be released on Wednesday.
Things to keep in mind
- The proceeds from selling T1 holdings will not count as margins for your open positions on the same day.
- If you sell shares on a settlement holiday, your sale proceeds will be delayed. In this case, your sale credit will be available on Kite on T+2 days.