Monday, January 4, 2021 2:21 pm
Effective 1st December 2020, the SEBI regulation regarding peak margins has changed the way sell amounts get credited from your Demat or T1 holdings. Here’s how it impacts you.
Selling a share from your Demat holdings
- 80% of the sell amount is available for trading on the same day
- The remaining 20% will be available for trading from T+1 day onwards
- 100% of the sell amount will be available for withdrawal from T+2 days onwards
Selling a share from your T1 holdings
- No Funds from the sell transaction will be **available** for trading on the same day
- **100%** of the total sell amount will be available for **trading only** from T + 1 day onwards
- **100%** of the total sell amount will be available for **withdrawal** from T + 2 days onwards
Here’s an example:
| Demat holdings | |
|---|---|
| Sell Date 9th December 2020 | |
| On 9th Dec (same day- T day) | 80% of the total sell amount is available for trading only |
| On 10th Dec ( T+1 day) | 100% of the total sell amount is available for trading only |
| On 11th Dec ( T+2 day) | 100% of the total sell amount is available for trading and withdrawal |
| T1 holdings | |
|---|---|
| Sell Date 9th December 2020 | |
| On 9th Dec (same day- T day) | No amount is available |
| On 10th Dec ( T+1 day) | 100% of the total sell amount is available for trading only |
| On 11th Dec ( T+2 day) | 100% of the total sell amount is available for trading and withdrawal |
Please note: In case there is a bank or trading holiday between the date of selling to T+2 day, the settlement period will be extended accordingly.
A quick recap on what are T1 holdings
Any stocks that are* still in transit* between the Exchange and Upstox i.e. have still not completed the T+2 days settlement cycle will be listed under the***‘T1 Holdings’*** tab on the Upstox web and mobile app. This signifies that as of now, the stock has** not yet** been successfully credited to your Demat account.
