Intraday Trading is the process of buying and selling shares on the same day. Although there are many benefits of intraday trading, the traders are often confused as to when the profits or gains generated during intraday trading will be credited to their accounts.
Even though the shares are sold and bought on the same day, the gain or profit will not be credited on the same day. So, when is the intraday profit credited into your account?
As per the latest regulation by the SEBI or the Securities and Exchange Board of India, whatever profit you earn from an intraday trade will be credited in T+1 day. You will receive your profit only after the market closes the next working day at 3:30 p.m.
Therefore, you will not be able to use intraday profits from your T day (Transaction day) for any other transaction that you have done on the same day. SEBI has ensured that your intraday gains are available for use only at the end of the next working day ( T+1).
How Does It Impact You as a Trader?
Let us understand this concept with the help of an example:
Suppose you carried out Intraday Trading on November 3. Let’s call it T day or Transaction day.
| DATE | TYPE | QUANTITY | PRICE | VALUE |
| 3 Nov 2021 | Buy | 5 | 2000 | 10000 |
| 3 Nov 2021 | Buy | 5 | 1000 | 5000 |
| 3 Nov 2021 | Buy | 10 | 2000 | 20000 |
You carried out 2 ‘buy’ transactions where you bought 5 shares of Rs 2000 each and 5 shares of Rs 1000 each of a company. This makes the total transaction worth Rs 15,000.
Also, on the same day, you sold 10 stocks of Rs 2000 each for Rs 20,000. Your intraday profit from the above transaction turns out to be Rs 5000.
Now we will understand the concept in 3 different cases:
Case 1 – T day or Transaction Day Falls on a Weekday
As per the latest guidelines, the intraday profit of Rs 5000 will be available for use or unblocked on T+1 day only.
In this case, T day is November 3. So, T+1 will be November 4. We are assuming here that November 3 is a weekday and November 4 is a working day.
Your intraday profit will be available for use on November 4 at 3:30 p.m. after the market closes for that day.
Case 2: T Day or Transaction Day Falls on a Friday
Let us assume that November 3 or T day falls on a Friday. In this scenario, your intraday profits from November 3 will be unblocked at the end of the T+1 working day.
In this case, the next working day will be November 6, Monday as the share market is closed on Saturday and Sunday. Your intraday profit will be available to you at 3:30 p.m. on November 6.
Case 3: When T+1 Day is a Market Holiday
Case 2 will repeat if the T+1 day is a market holiday. Suppose you booked intraday profit on a Wednesday and Thursday is a market holiday. In this case, your gains will be unblocked at 3:30 p.m. on Friday.
Frequently Asked Questions
- Why is my Intraday Gain blocked?
- As per the guidelines of SEBI or The Securities and Exchange Board of India, the intraday buy-sell profit amount is blocked on T day and will be available on the next market session i.e. T+1 after the market closes at 3:30 p.m.
- I have carried out Intraday trading today (Monday) and earned profit. When will I receive my gains as tomorrow is a holiday?
- Your intraday profit will be unblocked the day after tomorrow on Wednesday at 3:30 p.m. after the market closes.
- When will I receive my profits for the day?
- If you have taken any positions today and squared off the same day, your gains will get unblocked on the next market session (T+1) after the market closes.
