After SEBI released the new circular on changes in margin requirements, there’s a lot of hustle-bustle about what is going to be changed for the customers as well as for the brokers from 1st September 2020. So, AsthaTrade has come up with on-point brief changes before and after 1st September for all the clients associated with AsthaTrade.
Understand this by the following pointers:
- Stock sold from Demat holdings-
| Before (till 31st August) | After (from 1st September) |
| For trade in F&O or to buy other stocks, the proceeds can be used to buy | There wouldn’t be any changes as the stock is debited on the same day and give them to the exchange under the early pay-in-mechanism |
- Stock sold from BTST (T1 holdings)-
| Before (till 31st August) | After (from 1st September) |
| For trade in F&O or to buy other stocks, the proceed can be used to buy | To buy other stocks the entire proceeds can be used and to trade in F&O you can buy 60% of the proceeds |
- Intraday profits earned
| Before (till 31st August) | After (from 1st September) |
| The proceeds can be used to buy stocks and to trade in F&O on the same day | The earnings cannot be used until settled by the Exchanges (I.e., T+1 for F&O and T+2 for equity) |
- Options sold
| Before (till 31st August) | After (from 1st September) |
| The proceeds can be used to buy stocks and trade in either currency or equity F&O on the same day | The proceeds can be used only to buy options in the same segment I.e., option sell credit for stock options cannot be used to buy currency options |
To know everything about the latest updates into the stock market, tune into our blogs under the knowledge hub on our website.
Have great trading!
AsthaTrade