Why is a nudge displayed mentioning that 100% of the funds from the sale of holdings can be used for other trades?
The nudge is displayed to inform users of a recent regulatory change effective October 7, 2024. Under these new regulations, 100% of the proceeds from the sale of holdings are credited to the trading account and made available on the same day for all trades, including stocks and F&O positions. Previously, only 80% of the proceeds were available on the same day, with the remaining 20% accessible the next day.
Example scenario
- Before the change: Selling shares worth ₹1,00,000 would result in ₹80,000 being available on the same day for further trades, while the remaining ₹20,000 would only be accessible the next day.
- After the change: Selling the same ₹1,00,000 worth of shares now results in the entire amount being available on the same day for further trades.
The key updates, including those from the earlier implementation of upfront and peak margin norms, as well as the currently applicable recent regulatory changes, are as follows:
| Action | Changes applicable after upfront and peak margin norm implementation | After the recent regulatory change |
| Stocks sold from demat holdings | Only 80% of the proceeds can be used to buy stocks or trade in F&O. The balance 20% will be available for trade from the next trading day. | 100% of the sale proceeds can be used to buy stocks or trade in F&O. |
| Stocks sold from T1 holdings (i.e. BTST) |
100% of the proceeds can be used to buy other stocks or trade in F&O from the
next day
onwards. To learn more, see
Why is the credit from selling T1 holdings unavailable for use on the same day?
|
No changes. |
| Intraday profits earned | The earnings cannot be used until they are settled by the Exchanges, i.e., T+1 day. | No changes. |
| Options sold | Proceeds can be used only to buy options in the same segment, i.e., sell credit for stock options cannot be used to buy currency options. | No changes. |
| Hedged Position | 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. | No changes |
An NRI with a Non-PIS account can only use 75% of the sale proceeds for trading or investing on the selling day, and the remaining 25% will be released on the next trading day. To learn more, see What documents are required to open a Zerodha account as an NRI?
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