In a major announcement on Monday, Zerodha said that 100% of the sale proceeds will be available for trading after selling the shares.
Previously, only 80% of the proceeds were available to the traders and the remaining 20% were held towards upfront margin requirements and released the next day. Zerodha informed investors through a post on X, formerly known as Twitter.
For instance, if a trader sells 100 shares of ABC Company at Rs 1,000, the trader would receive only Rs 80,000 and the rest, Rs 20,000, would be available to them the next day, as per the older policy. But under the new policy, the trader will immediately receive Rs 1,00,000 after selling the shares, the tweet said.
This will help the investors to receive their proceeds immediately, allowing them to reinvest the funds without much delay and improve the cash flow for the same.
The new policy will not be applicable for buy today, sell tomorrow, or BTST trades. Under the BTST trades, the whole return will be available for trading the following day.
Buy Today, Sell Tomorrow is a trading strategy that provides investors with the opportunity to purchase shares and sell them on the next trading day. This approach helps traders to make use of the short-term price movements without holding onto the shares for long.
SEBI F&O Framework
Earlier, Zerodha's co-founder Nithin Kamath expected a 60% drop in total futures and options trades and a nearly 30% decline on the company's platform.
The new regulations include limiting weekly expiry derivatives contracts to one benchmark index per exchange and requiring the upfront collection of option premiums from buyers.
The Securities and Exchange Board of India announced several new measures within its derivatives framework aimed at improving the equity futures and options market.
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