Until the 1st of August 2022, you could instantly buy shares against sold holdings. However, post implementation of SEBI guidelines as explained in this article this was dis-constinued. Further, in accordance with regulatory and procedural amendments we are re-introducing instant credit for sale.
Effective 13th Oct 2022, PM Securities clients shall get immediate margins by selling holdings to initiate other positions.
There are 3 main conditions to such instantly available credits to initiate new positions as stated below:
1) Shares sold should be free demat holdings to be eligible for instant margin credits to your trading account. (Selling T1 holdings / Pledged shares shall not give instant margin credit)
2) 80% of the value of sold holdings shall become instantly available as margins to you. Ie. if you sell shares held in your demat worth Rs. 100, an instant margin benefit of Rs. 80 shall become available to you which can be further used to take positions.
3) Maximum cap on instant credit of margins shall be Rs. 10,00,000. Ie. if you sell shares worth Rs. 1 lakh, you shall get an instant margin benefit of Rs. 80,000. However, in case you sell shares worth Rs. 25 lakhs the instant margin benefit provided shall be capped to Rs. 10 Lakhs, irrespective of the value of shares sold.
The table below shows a few cases as example for better clarity
| Description | Instant Margin (Credit for sale) | Example |
| If you sell shares freely held in your account worth Rs. 12.5 Lakhs or less. | 80% of value of sold shares. | If freely held shares worth Rs. 1000 are sold you shall get Rs. 800 as instant margin credit. |
| If you sell shares freely held in your demat account worth Rs. 12.5 lakhs or more | Rs. 10 Lakhs shall be provided as instant margins credit irrespective of the value of sold shares. | If freely held shares worth Rs. 50 Lakhs are sold you shall get Rs. 10 Lakhs as instant margin credit. |
| If you sell pledged shares / T1 holdings / Encumbered shares of any value | No instant margin credit will be provided for such holdings being sold. | Not applicable. |
Important note for implication of instant margin credits on derivatives segment : Effective 1st of August 2022 for taking positions in derivatives segment requirement of margins has been amended where-in clients are required to hold at-least 50% value of margins in funds form and the remaining can be in any non-cash form like shares / mutual funds etc. The instant margin credit provided as per this article shall be valid for taking further positions in derivatives segment however these margins shall be treated as non-cash component not as funds.