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 holings

Sell Date

9th December 2020

On 9th Dec (same day ie 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 ie 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.