Investors can now sell shares and immediately use all the money from that sale to buy new shares on the same day. Starting Monday, the full amount from selling shares will be credited to the investor’s trading account, allowing for trading in stocks, futures, and options without delays.
Previously, investors could only access 80% of the sale proceeds immediately, with the remaining 20% available the next trading day. For intraday trades, profits were only accessible after the exchange settled the following day.
“This is a timely move that will greatly benefit clients and the overall ecosystem,” said Sudhir Jha, Head of Revenue at 5paisa Capital. “The extra funds can be used for any necessary financial transaction.”
For example, if an investor sold shares worth Rs 1 lakh, they could previously use Rs 80,000 on the same day, with the rest available the next day. Now, the entire Rs 1 lakh will be available for trading immediately.
“This change will benefit customers by providing them with 20% more of the sale proceeds to trade on the same day, once early pay-in of shares is completed,” added Narendra Jain, chief operating officer at IIFL Securities.
The 80% rule was introduced by Sebi in December 2020 and was gradually implemented in four phases, becoming fully effective by September 2021.
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