SEBI and Exchanges, has introduced changes in certain rules for collection and reporting of margins received from clients. Below areas in whcih it will be an impact on the way you are availing margin benefit for trading.
a. Margin Benefit while Buying shares: The benefit of purchased shares will be provided to the client after T+2. Once the actual delivery of shares is received, the shares will be transferred to Demat account, if debit arising from buying the shares is cleared, or you have created a forward pledge for availing margin funding facility; else shares will remain in Client unpaid securities account (CUSA) and will be sold on T+7 day.
b. Margin Release after Selling Shares: You may ONLY get the benefit of shares sold on Tday (i.e. instantly on the same day of trading) if stock are under lying in Client unpaid securities account (CUSA) , if stocks are lying unpledged in your demat account , if stocks are lying under Margin trading facility (MTF). Benefits of sales proceeds for Pledged stocks, Intraday Profits, BTST trades will only be available on or after T+2 day.
c. Squaring off Buy Option position to take another position: Sale proceeds from options can only be used for purchasing another option contract. It cannot be used for purchasing any other stock in cash segment or futures contract.
d. Buy Today and Sell Tomorrow (BTST) : Client can only initiate a BTST transaction only if the net available margin displayed in the Funds section in the mobile app / web login is equal to or greater than 20% of the sale value, or order will be rejected as per the RMS policy.
e. Profits from intraday trading: Profits arising out of intraday trading, though getting credited in the ledger will not be available as Net Available Margin upto T+2 Day.
f. Merged Settlement: Profits arising out of intra-day trading (all segments) or any credit proceeds arising out of sale transaction will not be available under ‘net available margins’ till the merged (multiple) settlement are fully settled.