The stock market settlement cycle operates on a T+2 basis. This means when you buy shares of a company, they are credited to the demat account two days later on the settlement day.
If you sell your shares, you receive the money on the settlement day two days later.
Buy Now Sell Tomorrow or BNST allows you to sell shares you bought before the settlement day. A customer can sell up to 100% of the shares bought the very next day, provided there is no change in normal settlement cycle.
The facility is available for both online and offline trading customers.
What are the benefits?
Buy Now Sell Tomorrow enhances liquidity for you.
- Suppose you bought a stock on Monday, and want to sell it before the settlement, you can do so using BTST.
- This will help you minimize losses as the stock price may start falling the next day. So, you need not wait till the third day to sell those shares
- In case of short allotment you will have to arrange for the shares to settle the short allotment, if any. It is advisable to trade in highly liquid Group A stocks to avoid auction penalty.
- The shares that have been bought and subsequently sold under BTST would be first credited and then debited from your Demat Account as per normal pay in and pay out. A customer will not be required to do anything different from a normal transaction.
- Margin release post selling stocks under BTST depends upon stocks multiple. Please check Margin Requirements page for details.
- The brokerage would be charged as per normal delivery brokerage on either side of the transaction.