Why have I not received full credit against the sell value of my holdings?
As per SEBI's new peak margin norms, if you sell stocks from your Demat or T1 (BTST), only 80% credit against the sale value will be available for subsequent trades in the same/other segments on the selling day. The balance 20% credit will be blocked under the " delivery margin " field on Kite until the next trading day.
You can check out the below table for the significant changes applicable after upfront & peak margin norm implementation:
| Action | Before implementation of the peak & upfront margin rules | From 1st December |
| Stocks sold from demat holdings | Can use proceeds to buy other stocks or trade in F&O | Can use 80% of the proceeds to buy stocks or trade in F&O. The balance 20% will be available for trade from the next trading day. |
| Stocks sold from T1 holdings (i.e. BTST) | Can use proceeds to buy other stocks or trade in F&O | Can use 80% of the proceeds to buy other stocks and 60% of the proceeds to trade in F&O |
| Intraday profits earned | Can use proceeds to buy stocks or trade in F&O on the same day | Cannot use the earnings until settled by the Exchanges i.e. T+1 for F&O and T+2 for Equity |
| Options sold ___________________________ | Can use proceeds to buy stocks and trade in either currency or equity F&O on the same day | Can use proceeds only to buy options in the same segment i.e. option sell credit for stock options cannot be used to buy currency options. |
| Hedged Position | Can exit any leg first without margin penalty even if there is an intraday margin shortfall when the position with additional risk/margin isn’t carried overnight. | First exit the higher risk/margin position if adequate margins are not available since margin requirements will be monitored intraday and shortfalls may lead to a penalty. |
An NRI with a Non-PIS account can only use 60% of the sale proceeds for trading or investing on the selling day, and the remaining 40% will be released on the next trading day. See How can I open a Zerodha trading and demat account as an NRI?
Check this Z-connect post for more details.
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