As per SEBI’s new peak margin rules, 20% of the value of stocks sold from your portfolio will be blocked for trading on the day you’ve sold them. The date on which its sold is known as transaction day or “T Day”
This blocked margin will be available from the next trading day (T+1).
This means, if you have sole shares for Rs 14,549.75, then Rs 2,909.95 (20% of 14,549.75) will be blocked for the transaction day. On the T day, your trading balance will be Rs 11,639.80 (80% of Rs 14,549.75).
Rs 2909.95 will be available for trade from the next trading day (T+1).
Here is the table showing how trading balance and blocked delivery margin is calculated as per our above example.
Particulars | Amount in INR |
Funds from Delivery Sell | 14,549.75 |
Blocked Delivery Margin (20% of Rs. 14549.75) | 2,909.95 |
Trading Balance (80% of Rs. 14549.75) | 11,639.80 |