Sell Stocks and Use 100% Funds Instantly: SEBI’s New Same-Day Settlement Rule

From this Monday, investors can now access 100% of the fund on the same day after selling their shares. SEBI introduced a new rule. This means if you sell shares, the full amount will be available for trading or reinvestment immediately, giving you more flexibility in the market.

Immediate Access to Full Sale Proceeds

Until now, investors could only use 80% of the money from selling shares on the same day, with the remaining 20% available the next day. With the new rule, you can now access the entire amount right away. For example, if you sell shares worth ₹1 lakh, Rs 80 thousand gets released instantly for trading, but now, the full ₹1 lakh will be available for trading on the same day, allowing you to buy new stocks or invest in futures and options (F&O) without delay.

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Faster and Smoother Trading

The new same-day settlement process will simplify trading and give investors more control over their funds. Whether you’re a day trader or a long-term investor, the ability to access 100% of your sale proceeds immediately will make the trading process faster and smoother. SEBI had previously introduced the 80% rule in phases, starting in December 2020, and this upgrade marks the next step in improving trading efficiency.

How This Benefits Investors

This alteration means that investors are free to withdraw more liquid cash and raise more cash in a relatively faster manner. You can promptly seize market opportunities and rebalance your money without waiting for money to get freed up. Therefore, this may be especially helpful for traders looking to maximize profit or managing an active portfolio. One can easily change their positions in the F&O market due to increased liquidity.

Thus, this SEBI will provide a new system of regulations to facilitate investment operations smoothly, thus empowering the investors to perform well in the market financially.

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