The Indian stock market caters to every type of investor. Some investors invest in stocks to make profits in the long term, while some investors invest to make short-term profits. Investors who invest in stocks to make short-term profits are called traders and rely on buying and selling stocks in the short term without holding them for long. Among numerous types of trades, intraday traders are known to buy and sell shares on the same trading day to make profits from the daily price movements of stocks. Some intraday traders buy and sell shares in minutes or hours to profit from slight price fluctuations. However, investors considering intraday trading are confused about when the profits are credited to the trading accounts.

If you are considering intraday trading, it is crucial to know the time period in which the profits are credited to your trading account. This blog will help you know when intraday profit is credited so that you can make better intraday trades.

• SEBI recently released a new circular specifying the time period after which intraday profits are unblocked.
• As per the new circular, intraday profits are unblocked after the market closes on T+1 day.
• If the T+1 day falls on a holiday, the profits are unblocked on the next business day when the market is open.

The Securities and Exchange Board of India recently announced a new regulation that changed the time period for crediting intraday profits to intraday traders' trading accounts. According to the new regulation, the profit you gain from intraday trades will be unblocked and credited to the trading account only after the market closes on the next trading day. This means that if you make profits today, you can only use the amount after the market closes on the next trading day. This creates a gap of a day between the two trading days before you can use the amount.

Here is a detailed example of how the credit of intraday profits impacts your trades:

You executed two trades on September 12, where you bought 100 shares of XYZ Ltd for Rs. 500 and sold all of the shares on the same day at Rs. 550, making a profit of Rs. 5,000.

Since you have made an intraday profit, there are two scenarios that impact your intraday profit credit:

Scenario 1: T day is a weekday

As per the new regulation, your profits are unblocked after the market closes on the next business day. If September 12 is a weekday and the next day, September 13, is a working day, you will get the funds after the market closes at 3:30 PM on September 13. This means that if two continuous days are working days and the stock market is operating on both days, you will get the profits after T+1 day after 3:30 PM.

Scenario 2: T day is a Friday

If September 12 is a Friday, this means that the next day is Saturday, which is a stock market holiday. Since there are no settlements on a stock market holiday, you will get the intraday profits on the next working day, which is Monday, September 15, after 3:30 PM. This is also applicable if transaction day is a working day (any day of the weekday), but the next day is a national holiday, and the stock market is closed. In such a case, you will get the profits after the market closes on the next working day after the holiday.

Intraday trading requires traders to buy and sell shares on the same trading day to make profits from the slight price fluctuations. However, SEBI has created a new regulation that specifies when intraday profits will be credited. As per the new regulation, intraday profits are unblocked after the market closes on T+1 day if it is not a trading holiday. Now that you know when you can use the intraday profits, you can better utilise them for making new intraday trades.