Starting September 1, 2020, all trades would require upfront margins, according to a circular from SEBI. The following are the results:

1. Proceeds from the sale of existing holdings can be used to fund new investments -

You can utilize up to 80% of the proceeds from the sale of your stock holdings to take new positions — other stocks or F&O bets — as soon as you exit them.

Maximum intraday leverages have been capped under the new peak margin regulation, and only 80% of credit from selling your holdings will be accessible for new trades. From T+1 day onwards, the complete credit will be available.
Important:


1. A margin penalty based on the new peak margin restrictions may be imposed if you sell your assets and then buy them back after using the sale profits in other trades.
2. In order to provide you with the benefit of being able to use the holdings sale credit right away, we are debiting shares on T day and paying the Exchange early. The shares will be in the Early payin account until the stocks are collected by the Clearing Corporation (T+2), during which time certain corporate action benefits will not be payable. As a result, if you want to be eligible for corporate activities such as buybacks, don't sell your shares and keep them in your account until the Record Date.
2. Using proceeds from the sale of T1 holdings -

You can sell your T1 holdings (stocks purchased the day before but not yet credited to your Demat) and utilize 80 percent of the proceeds to acquire new stocks for delivery, just like you can with your stock holdings. However, you will only be able to apply 60% of the selling price to F&O.

3. Intraday earnings can only be applied to new positions after they have been settled.
Intraday earnings will not appear in your trading portals balance until the exchange settles them. The Money are settled the following trading day for F&O and two trading days for equity. For example, if you buy stocks worth Rs 2 lacs on Monday and sell them for Rs 2.25 lacs the next day, Rs 2 lacs will be accessible for additional transactions instantly. On Wednesday, however, Rs 25 thousand will be available in your Trading portals funds.

In addition, if the T+1 (for F&O trades) or T+2 (for equity trades) day is a settlement holiday, the intraday profits will be available on the next trade settlement day.

4. You can only utilize option sale credit to buy options on the same trading day -

When you exit long/buy option positions or initiate new write/short option positions, the proceeds or credit of option premium can only be utilized for new long/buy option trades on the same trading day and within the same segment (proceeds from equities options cannot be used for currency or vice versa). Only from the next trading day onwards may you use these proceeds or option credit for any other form of trade.