look news india
It is a matter of great surprise and happiness for investors that this rule is going to come into effect from next Monday. As per the earlier rule, only 80 per cent of the value of shares sold by investors was credited and the remaining 20 per cent was credited to the account the next day.
Therefore investors could not use 100 percent of their money to buy other shares. But now this rule will be lifted and from Monday onwards, 100 per cent of the amount will go to the investors on the day of share sale. So they can buy the stock in full quantity. This step is a big relief for investors. Because, due to the earlier rule, investors faced losses in investment. They could use only 80 per cent of the amount to buy stocks of their choice and had to wait for the next day to deposit the other amount. Therefore they could not buy the full amount of stock and were incurring losses. Also, if the stock price had increased the next day, investors would have had to face a double blow. Intra-day traders were able to earn profits only after exchange settlement the next day. But this inconvenient practice will now be a thing of the past. The trading account will be fully funded for all trades including stock and futures and options positions on the same day.
Experts said that this is a step taken at the right time. Due to which the investors as well as the entire ecosystem will greatly benefit. The extra funds can be used by the customer for any necessary financial transactions. Take the previous rule for example, earlier if investors sold stocks worth Rs 1 lakh, they would get Rs 80 thousand credited to their trading account on that day. The remaining 20 thousand rupees were coming into the trading account the next day. From now on the entire amount of Rs 1 lakh will be deposited into the trading account on the same day. Which is a big relief. The 80 percent rule was introduced by SEBI in December 2020. Which was gradually introduced in four phases. Which was fully implemented in September 2021.