I recently completed my rebalance my smallcase portfolio and noticed that

(a) While the new additions reflect in the Smallcase portfolio, I’m unable to see the same in my broker holdings.

(b) The proceeds from the stock exits have not fully hit my broker account.

What is the reason for the above mentioned outcomes ?

Both the outcomes mentioned above are the result of settlement rules laid out by SEBI.

(a) When you BUY a stock, it will take T+2 days for the stock to hit your broker holdings while you shall be able to see the presence of the newly bought stock immediately after the transaction.

(b) When you SELL a stock, only 80% of the sale proceeds hits your broker account on the same day. The remaining 20% is released on the next day.

We have explained this in a detailed manner in this video. Please have a look and let us know in case you have any questions. Here’s an article from Zerodha that may throw some more light on this subject.

Now, what if you have made a partial exit of say Rs 50,000 and you want to withdraw this money from your broker account to your bank account ?

When you sell shares, 80% of the funds hit your broker account on the same day “T day”. While 20% of the funds hit your broker account by the next day “T+1” day. While you can use these funds for other trades, withdrawal of these funds will be possible only by “T+2” day. Check this article (and other linked articles) for more details

If you have any further doubts or questions, please send an email to support@weekendinvesting.com