TABLE OF CONTENTS

• What is meant by Payout of funds?
• When will my funds get credited to my bank after making a payout request?
• Can I withdraw full funds?
• What is withdrawable balance and how is it calculated?
• What if I have requested for an amount that is in excess of available clear credit balance?

What is meant by Payout of funds?

Payout of Funds is basically the withdrawal of funds from the Trading account. It is where you request us to transfer the amount lying as clear credit in your ledger balance to any of the bank accounts you have registered with us as per your choice.  

When will my funds get credited to my bank after making a payout request?

Your payout request will be processed as per the timelines mentioned below:

Note:

Saturday/Holidays - Payout requests shall not be processed. Please note that NEFT/ RTGS fund transfer may take 2 to 3 hours from the time of authorization at our end to credit your bank account if there is no technical issues at the bank end.

Please note that payout request cannot be placed on the same day of making pay-in. You need to wait for the next day (after making a pay-in i.e. transferring funds to us) and then place a withdrawal request on the next day. To illustrate, if you transfer 1 lakh on 20th of August, you cannot request for payout on the same day, 20th of August. You can however, make it on the next working day.

Can I withdraw full funds?

Yes, you may, if that is your withdrawable balance.

Withdrawable balance is the amount of money you can transfer from the trading account to your bank account. Your withdrawable balance may differ from the total available funds in your account since funds from trades are not immediately settled. 

In India, exchanges follow a rolling settlement cycle. Funds from the Equity and F&O sale proceeds get settled to the trading account on Trade + 1 working day. Therefore, you will be able to withdraw only the funds that have been settled to your account. 

What is withdrawable balance and how is it calculated?

The withdrawable balance is the amount that you may request as payout. It is calculated in the following way.

Please note that the withdrawable balance is computed after adjusting the margins blocked if you've pledged your holdings and raised margins to trade in the derivative segment with available cash balance:

50% of the margins blocked have to come in the form of collateral margins & the other 50% by way of cash or cash equivalent. If you do not have enough collateral margins to cover for 50% of the margin blocked, the difference will be charged from the available cash balance

Here's an example to help you understand better:

Assume, you have collateral margin of Rs 1 Lakh from pledged stocks after the required haircut. You also have Rs 70,000 free cash in your account and then take an overnight F&O position which requires a margin of Rs 1 lac.

In this case, you will be able to utilize up to 50% of the required margin using the pledged stocks i.e. Rs 50,000. The remaining 50,000 margin has to be covered by cash. This leaves you with a withdrawable balance of Rs. 20,000.

What if I have requested for an amount that is in excess of available clear credit balance?

If the fund payout requested is in excess of the clear credit balance, then the available clear credit balance will be paid out to your selected bank account.

The request for the balance amount will be subsequently cancelled. You will be required to make a fresh request as and when your funds become withdrawable. 

For example:

Let's assume that you have clear credit of Rs. 50,000 on (T day begining) and you have also sold shares worth another Rs. 25,000 . Now you make a payout request for Rs. 75,000 on T day. In such a case, Rs. 50,000 will be paid out to you next day (T+1) day before 11 a.m. and the balance amount will be cancelled.