Change in the Process of Margin Allocation after Delivery Sell Trades2 min read
We at Paytm Money are committed to providing you with a safe, secure and transparent platform to help you invest and trade. With this blog, we want to inform you of the recent guidance/clarification issued by the regulators on the concept of Margin Collection and reporting via circular dated April 26, 2023, with reference number NSE/INSP/56512 and notice number 20230426-68.
The Change
Existing Process
Earlier, for sale transactions, we used to provide the margin sooner as the allocation was done in the system and reported to the CDSL under the Block mechanism. This process was time-consuming as the batch upload had a time lag in the absence of real-time API upload. However, the margin benefit for the same was provided to the client.
New Process
As per the changed process, the benefit for credit of sale can only be extended when Early Pay In (EPI) request is accepted by the depositories and the credit entry of the sale value of shares is posted in the ledger of the client. This would result in the benefit of credit for sale being passed on the next trading day.
How does it impact you?
Here’s a quick comparison between the existing process and the new process. Let’s assume you place a Delivery sell order of XYZ Stock of ₹ 10,000 in the Cash segment. The difference in the process will be as follows:
| Existing Process | New Process |
| ₹ 8000 is instantly available to take any further trades and ₹ 2000 is allocated from the next trading day. | The entire amount of ₹ 10,000 will be available to take any further trades from the next trading day. |
In summary, In the current process, after the delivery sell trade, 80% of the total amount is available to you instantly. After this change, the benefit of credit for sale of delivery sell trades will be passed on to you from the next trading day.
Alternate process
However, if you need funds immediately, there is an alternate method. You can avail the benefit of near real-time margin by availing the features of the Margin Pledge feature. You can pledge your shares with a quick OTP and get the margin benefit for the subsequent trades without actually selling the shares.
To know more about Margin Pledge, read the blog: What is Margin Pledge?
The detailed features and process on the Margin Pledge mechanism is mentioned in the blog: All About ‘Margin Against Stocks’ Feature On Paytm Money
Rest assured. Paytm Money is working tirelessly to ensure you do not face any hassles in your investing and trading experience, while being compliant with the regulations.
We will keep you posted on any changes in the above-mentioned process, if any.
In case of any queries, please reach out to exg.support@paytmmoney.com
