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 day's 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.


Watch the below video to understand more about Settlements Cycle with Upstox.