Previously, investors could only access 80% of the sale proceeds on the same day, with the remaining 20% becoming available on the second trading day. For intraday trades, profits were accessible only after the exchange settlement the next day.
“This is a timely move that will greatly benefit clients as well as the overall ecosystem,” said Sudhir Jha, Head of Revenue at 5paisa Capital. “The additional funds can be used by clients for any necessary financial transaction.”
For example, if an investor sold shares worth Rs 1 lakh, they would previously have been able to use Rs 80,000 on the same day, with the remaining Rs 20,000 accessible the following day. Now, the entire Rs 1 lakh will be available for trading on the same day.
“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 rolled out in four phases, becoming fully effective by September 2021.