What is the Settlement Cycle when I sell my Holdings?

Starting from 1st December 2020, a SEBI regulation regarding peak margins has changed the way sell amounts get credited to your account.

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+1 day evening 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 + 1 day evening onwards

Here’s an example:

 

T1 holdings
Sell Date: 9th December 2020
On 9th Dec (same day i.e. T day)	No amount is available
On 10th Dec ( T+1 day)	100% of the total sell amount is  available for trading only
On 10th Dec ( T+1 day) evening	100% of the total sell amount is  available for withdrawal

Please note: If there is a bank or trading holiday between the date of selling to T+1 day, the settlement period will be extended accordingly.