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How does block funds facility work for Delivery?
In Delivery, there is no leverage provided (Unless MTF options chosen) i.e. a client needs to have 100% of the funds required to purchase the stocks . Complete trade value will be debited from the blocked funds. Let’s understand with the help of an example:
Delivery - BUY
Blocked Funds – 1,00,000
Scrip name – XYZ Ltd
Quantity – 100
Price – 500
Total / Trade value = Quantity X Price = 100 X 500 = 50,000
Debit:
- An amount of Rs. 50,000 will be debited (from the blocked funds of Rs. 1,00,000) in the evening of the trade date at approximately 4:00 pm.
- Brokerage (as per your plan) & taxes shall be debited separately from the blocked funds on the same day approximately by 9:00 pm
Note: Balance amount will be available as a block for you to trade the next trading day
Delivery – SELL
Blocked Funds – 1,00,000
Scrip name – XYZ Ltd
Quantity – 100
Price – 500
Total / Trade value = Quantity X Price = 100 X 500 = 50,000
Debit:
- 20% margin on the sale value i.e. 50,000 X 20% = Rs. 10,000 will be debited approximately at 4:00 pm
Credit:
- Margin of Rs.10,000 will be credited back by approximately 5:30 pm.
- The sale value of Rs.50,000 (after adjusting already paid margin, applicable brokerage + taxes) will be credited to your ‘Default’ (Only for SSFB) bank account on T+1 day (T being the trade date)
Delivery - BUY
Blocked Funds – 1,00,000
Scrip name – XYZ Ltd
Quantity – 100
Price – 500
Total / Trade value = Quantity X Price = 100 X 500 = 50,000
Debit:
- An amount of Rs. 50,000 will be debited (from the blocked funds of Rs. 1,00,000) in the evening of the trade date at approximately 4:00 pm.
- Brokerage (as per your plan) & taxes shall be debited separately from the blocked funds on the same day approximately by 9:00 pm
Note: Balance amount will be available as a block for you to trade the next trading day
Delivery – SELL
Blocked Funds – 1,00,000
Scrip name – XYZ Ltd
Quantity – 100
Price – 500
Total / Trade value = Quantity X Price = 100 X 500 = 50,000
Debit:
- 20% margin on the sale value i.e. 50,000 X 20% = Rs. 10,000 will be debited approximately at 4:00 pm
Credit:
- Margin of Rs.10,000 will be credited back by approximately 5:30 pm.
- The sale value of Rs.50,000 (after adjusting already paid margin, applicable brokerage + taxes) will be credited to your ‘Default’ (Only for SSFB) bank account on T+1 day (T being the trade date)
Last updated: 3 Months Ago
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Banking
Will I be able to access SSFB Netbanking, SSFB App and services?- What are the different methods for adding funds to my Bank account?
- My existing account with SSFB has a minimum balance criteria. Will I get the benefit of zero balance if I link it to Torus?
- How will I be informed about the account opening & what documents will I receive?
- Can I opt for the 3 in 1 account benefit if I already have an existing Torus account?
- I already have a SSFB bank account. Can I add it in the Torus app?
- What documents are required to open a Torus 3-in-1 account?
- What is Torus 3-in-1 account & what are the benefits?
- How long does it take to open a 3 in 1 account?
- What are the charges for opening a 3 in 1 account and minimum balance required in the bank?
