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What is Compliance payout?

In pursuance of SEBI’s circular, Clients who have traded in the month/quarter, a broker can retain only Rs. 10,000 in his / her account while the remaining balance above Rs. 10,000 will be subject to Pay-out at least once in every month/quarter. Clients who have NOT traded during the month/quarter the amount available in the ledger will be subject to Pay-out every month/quarter.   As a client, the Payout of funds provided as margin for Trading can be an inconvenience at times wherein You may see a potential opportunity in the market and only to your surprise, there are no funds in your Trading account. The cost involved in the transfer of funds (in and out of your Trading account). Time is taken for this transaction (24hrs)   In order to avoid this inconvenience, we suggest clients invest in NSE Listed Exchange traded fund 'Liquid Bees'. Here we do not charge any Brokerage and even STT is not applicable for the same. As stated earlier, this is purely a...

What is the charges (penalty) that the seller has to incur for short delivery?

The seller who results in short delivery is charged based on how the position is closed. There are 2 ways a position to be closed: Auction: First the exchange will try to close the position via auction where the seller is charged the difference between the auction settlement price and the original selling price plus auction penalty of 0.01%. Exchange: If it is unable to close the position via auction then the exchange will close out the position in spot market where the seller is charged the difference between the new settlement price and the original selling...

What is short delivery?

It is a situation where an investor sells stock which he/she don’t have in the Demat account and is obliged to deliver those stock to the Exchange on settlement day (T+2 day). Since the investor does not have them it is considered short...

What is settlement cycle?

Settlement cycle also referred to as settlement period refers to the duration of a trade settlement i.e. it is the period in which the buyer and seller of stock have to settle their obligation to each other. Buyer’s obligation is to make payment while the seller must deliver the sold stock. Equity cash has a T+2 settlement cycle. So if you have bought stock today which is also called as (T-day or Trading day) it will get deposited in your Demat account only on T+2 days. Scenario Stock are bought On Stock Deposited in Demat a/c on 1 Monday Wednesday 2 Wednesday Friday 3 Wednesday Monday 4 Friday Tuesday   Please Note* In scenario 1, 2, and 4 the stocks are deposited/settled as expected on T+2 day but for scenario 3 the stocks are deposited/settled on T+3 day since there was a stock market holiday on either T+1 or T+2 day and as result the stock deposit/settlement got postponed to the next possible Trading...