What will happen if I don't square-off my BTST position on T+1?
If you don't square off your BTST position on T+1, it will be treated as follows:
- It will be converted to a cash/delivery order.
- Based on the margins (cash/pledge) available in your account, the net debit of your position will be calculated. Thereafter, the securities will be treated as per the guidelines issued under the handling of unpaid securities.
For example, Mr Ajay buys 1000 shares of SBI at Rs. 50 per share (Rs. 50,000).
| Scenario | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Purchase Value | Rs. 50,000 | Rs. 50,000 | Rs. 50,000 | Rs. 50,000 |
| Available Margins | Rs. 15,000 | Rs. 25,000 | Rs. 37,500 | Rs. 50,000 |
| Net Debit | Rs. 37,500 | Rs. 25,000 | Rs. 12,000 | NIL |
| Min amount held in Geojit's CUSPA (125% of debit) | Rs. 43,750 | Rs. 31,250 | Rs. 15,625 | NIL |
| Transferred to client's demat account on T+1 | Rs. 6,250 | Rs. 37,500 | Rs. 68,750 | Rs. 50,000 |
- If funds are brought into the client’s trading account by T+4, an equivalent amount of shares will be transferred to his demat account:
Let us consider scenario 1 from the above example wherein shares worth Rs. 43,750 was transferred to the CUSPA on T+1. If Mr Ajay brings in Rs. 25,000 on any day between T+1 and T+4, shares worth this amount will be released in his demat account on the same day.
- If funds for the position are not brought in by T+4, the shares held in the CUSPA will be automatically sold by Geojit's RMS (Risk Management System) by 9:15 a.m. on T+5:
Continuing with the example above, the net debit after considering the funds of Rs. 25,000 brought in, is Rs. 18,750. If Mr Ajay doesn't bring in Rs. 18,750 by the evening of T+4, the shares pledged in favour of the CUSPA will be sold (as a market order) on T+5.
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