Investors now enjoy immediate access to full sale proceeds, a significant improvement in trading efficiency. Previously restricted to 80% on the same day, now the complete sum is credited instantly. This change, lauded by industry experts, boosts liquidity and trading flexibility, benefiting clients and the financial ecosystem. The Sebi-imposed 80% rule, fully effective since September 2021 after gradual implementation, marks a positive advancement in investor empowerment and financial accessibility.
In exciting news for investors, a significant shift has occurred in the trading landscape. As of this week, individuals looking to sell shares and swiftly reinvest their proceeds can now do so with ease. The entire sum from selling shares will be promptly credited to the investor's trading account on the same day, revolutionizing their trading capabilities across stocks, futures, and options.
Previously, investors were limited to accessing only 80% of the sale proceeds on the same day, with the remaining 20% becoming available on the subsequent trading day. Furthermore, profits from intraday trades were only accessible post the exchange settlement on the following day.
Sudhir Jha, Head of Revenue at 5paisa Capital, enthusiastically noted, "This timely measure stands to benefit clients and the broader ecosystem significantly. The additional funds can now be leveraged by clients for any necessary financial transactions, enhancing their trading experience."
To illustrate, consider an investor who sells shares amounting to Rs 1 lakh. Previously, they would have been able to utilize Rs 80,000 on the same day, with the remaining Rs 20,000 accessible the day after. Now, the complete sum of Rs 1 lakh will be at their disposal for trading instantly.
Narendra Jain, the chief operating officer at IIFL Securities, emphasized, "This change is a boon for customers, providing them with a 20% increase in the sale proceeds available for trading on the same day, once the early pay-in of shares is finalized."
The 80% rule, implemented by Sebi in December 2020 and gradually integrated over four phases, culminated in full effect by September 2021. This development marks a positive stride in empowering investors with enhanced liquidity and expedited access to their trading funds.
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