When you sell your Depository holding or close your open positions, you will receive a credit called Credit for Sale. This Credit for Sale, as you would have noticed, cannot be used to take a fresh position on the same day. This is because, as per statutory guidelines, you must pay at least 20% of the transaction value as upfront margins when taking equity positions. If you do not have enough funds to cover the required margins, you will be charged a penalty for the shortfall.

It's important to note that when you sell a stock from your demat account, it takes T+1 day for the credit to be fully processed. This means that even though you have sold the stock and generated sale value, you will not be able to use this amount for taking fresh positions on the same day. Instead, you will have to wait for the credit to clear, which will happen the next day, before you can use it to take new positions.

Hence, in order to protect your interest, we provide CFS only on Trade day + 1 (or Next Trade day) on settlement of funds by