Intraday is the most fascinating thing about the stock market. You will not be able to find any investor of the stock market who didn’t use this segment of stock market at least once. After SEBI’s new guideline coming into practice from 1st march 2021, people are confused and looking for answers of when is intraday profit credited after this new rule.
Here is the answer for you with all the possible scenarios.
Table of Contents
When is Intraday Profit Credited?
According to a new policy introduced by the Securities and Exchange Board of India (Sebi), starting from 1st March 2021 any funds generated from intraday transactions will be available for use only after the exchanges closes on the next trading day.
This suggests that you won’t be able to use any of your intraday gains of the day in any other trade on that day. Your intraday earnings must be released in your account only at the end of the next working day.
Understand of New policy Regarding when intraday profit credited?
Let’s assume you traded 3 intraday trades on 03 April 2021 in a stock, and we’ll mark it T (transaction) day.
| Date | Buy/Sell | Quantity | Stock Price | Total amount |
| 03 April 2021 | Buy | 20 | 985 | 19700 |
| 03 April 2021 | Buy | 10 | 1025 | 10250 |
| 03 April 2021 | Sell | 30 | 1100 | 33000 |
You bought 20 stocks of firm xyz for Rs 985 each and 10 stocks for Rs 1,025 each in two separate buy trades.
This brings the cumulative value of your purchases to Rs 29,950.
Let’s assume you sold these 30 shares at rs 1,100 each for Rs 33,000 on the same day.
The mentioned trades result in an intraday gain of Rs 3,050.
Let’s look at three different situations to better understand the latest reform.
when intraday profit credited in zerodha? -Situation 1
This total amount of Rs 3,050 will be released only on T+1 day, as per the new policy change.
T is the 3rd of April, so T+1 is the 04th of April. It is presumed that 3rd and 4th April both are weekdays in this scenario.
After the markets settle on 04th April 2021, at 3.30 p.m., a total amount of Rs 3,050 will be released in your account.
Situation 2
Suppose that T Day (3rd April) occurs on a Friday. The total amount of 3,050 will be released at the end of the T+1 business day on Monday 6th April, not on 4th April, which is a Saturday.
In this scenario, On 06 April, at 3.30 p.m., your intraday profit of 3,050 will be released in your account.
Situation 3
If T+1 is a market holiday, Scenario 2 will play out again. Assume you made intraday profit on a Friday, and the market is closed on weekends and again on Monday due to national holiday.
In this scenario your profit of 3,050 will hit your account on 3.30 p.m. on Tuesday.
From all 3 situations the conclusion is that you need to wait till the next trading closure to get the money which you made from intraday trading.
Pros of New Intraday fund credit Policy
- Reduce the volatility.
- Traders are more conscious while choosing a trade intraday as profit will take time to be credited.
- Enhance the stock price.
Cons of New Intraday fund credit Policy
- Reduce the chances of making more profits
- You can trade less number of transactions
- Exchanges income will be less
Conclusion
There are different views of every trader regarding this new policy. However, Sebi has taken this step in the favor of unskilled traders as they are not growing faster after march 2021 crash as new people are losing money to skill traders.
This is all from our side regarding When is Intraday Profit Credited? Although, if you have any doubts about when is option profit credited you can just comment below.
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FAQ About when intraday profit credited in upstox?
zerodha intraday settlement time
The Intraday Settlement Time is T(Trading)+1 Day.
When is intraday profit credited upstox?
It will be credited after next trading day.
When is intraday profit credited in groww?
You will get the money after next Business day.
when is intraday profit credited in angel broking?
The money will be credited in your fund section after next trading day.
When is Intraday profit credited in 5paisa?
You will receive the money after the following trading day will be over.
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