Intraday trading is one of the most engaging activities of the stock market. This is the stock market segment where most of the traders have tried to increase their wealth, and most of them are still dealing with intraday trading.
So, do you want to know when the intraday profit is credited to your account? Especially the latest regulations of SEBI that were implemented after 1st march, 2021. From that time, most of the investors are still confused and asking when will their intraday profit be credited to their account. And in this article, we will discuss the same with the help of several possible scenarios.
When is Intraday Profit Credited?
Recently, SEBI or the Security Exchange Board of India regulated a new policy for the share market’s intraday trading. And as per this policy, the traders can use the funds generated from intraday trading or transactions after the closing of the upcoming or next trading day. It means you can use your transacted fund after the next trading day of the stock market. Due to SEBI’s this guideline, you will not utilize the intraday’s gains to buy other securities. It will show in your account after the next working day of the stock market.
What is SEBI’s New Policy for Intraday?
Let’s take the help of an example to understand the new regulations of SEBI and see the impact of intraday and investors’ wealth.
| Date | Intraday Activity | QTY | Share Price | Amount |
| 02-08-2021 | Purchased | 40 | 1000 | 40000 |
| 02-08-2021 | Purchased | 20 | 1100 | 22000 |
| 02-08-2021 | Sold | 60 | 1200 | 72000 |
In this example table, you can see that trader A has made three transactions in his intraday where he made two-time transactions for the purchase and one to sell. For the first time, he bought 40 shares of Rs1000 each and spent Rs40000, and the second time he purchased 20 shares for Rs11000 and spent Rs22000 again. In total, he spent Rs62,000 to buy the shares for his intraday trading. And on the same day, he sold 60 shares for Rs1200 each and generated Rs72000 revenue. Out of that, he received an intraday gain of Rs10000.
So, when this gained income is credited to your account. To understand this, let’s look below at different cases that will help you understand the latest SEBI regulations.
Case 1: T Or Transaction Day Take Place On Weekdays
On weekdays, you will not be confused because the new regulation reflects that you can use your gained fund after the next working day. So, if we assume 2 August is the working day and not the weekend, you will get your intraday gain on 3 August at 3.30 PM when the stock market closes.
Case 2: T Or Transaction Day Comes On Friday
Let’s suppose 2 August is our T day which takes place on Friday. And as the new regulation says, you will get your gains after one trading day, but in this case, the next day is Saturday. Therefore your earned money will transfer to your account after T+1 (working day) which is Monday. On Monday, your intraday gains will be credited at 3.30 PM on 4 August. And when this gets credited, you can use your Rs10,000 to buy new profitable securities.
Case 3: T Or Transaction Day Is On Holiday
Some transactions can also take their place on holidays, so in this case, the scenario or case two apply. Let’s say the T+1 day is the holiday, or if you traded on Monday, then the next working day, Tuesday and Wednesdays, are holidays. So your earned fund will be credited on Thursday at 3.30 PM, which is the closing time of the stock market.
Advantages Of SEBI’s New Intraday Fund Credit Regulations
SEBI’s this regulation has some advantages, as we have discussed below. It would help if you also looked at several advantages because these regulations focus on saving new traders who used to lose their money.
- The minimum volatility rate will be there, which is suitable for traders.
- It will help in increasing or improving the price of shares or stocks.
- Now traders will invest more consciously because they will be receiving the earned fund after the next working day.
Disadvantages Of Sebi’s New Intraday Fund Credit Regulations
However, new Intraday Fund Credit regulations have some disadvantages as well. It has reduced the number of chances to earn more money with the help of intraday gains.
- Now you can do fewer transactions compared to earlier.
- The exchange will offer fewer earnings or intraday gains; therefore, it will also affect your wealth.
FAQs
Why My Intraday Profits Blocked?
According to SEBI’s new guidelines, your intraday profits will be credited on the next working day using the T+1 equation. For more details, you can check out the different cases that we have discussed above.
It Has Been One Day, But I Did Not Get Intraday Credit?
You didn’t get intraday credit because the next day will be a holiday and the market will be closed. In this case, you get your fund on the next working day, as discussed in case 2.
Conclusion
In this post, we discussed When Is Intraday Profit Credited, especially after the new guidelines of SEBI that launched on 1 March 2021. Here you also learned your intraday fund could be credited on varied days depending on whether the next day is working or is a holiday. This is one of the crucial steps taken by SEBI or the Security Exchange Board of India to save the new traders. They try their luck in Intraday Trading. As most intraday new traders were losing their money and getting trapped, this regulation can somehow control this activity.
So, I hope you learned when your intraday profit or gain is credited to your account. And if you learned some crucial aspects from this post, please share this essential information with your friends. Or relatives who are new in the stock market trading and willing to know more about it. If you still face any doubt related to this fund credit policy of SEBI. Then you can comment down below; we will surely reply to answer.