In order to make the new SEBI guidelines easier for you to follow, we have split the Delivery of all equity shares you purchase under 2 separate categories: Demat and T1 holdings.
Sections:
How to check Delivery and T1 holdings
What are Demat and T1 holdings
1. On the Upstox platform, you can check Demat and T1 holdings under:
Step 1: Go to Portfolio → Holdings and Select the stock to view the Holding details.
Step 2: Select the stock to view the Holding details
Step 3: Navigate to the 'History' tab and click on 'View Breakdown'.
Step 4: The 'Net Holdings' page shall be displayed with 'Today' and 'Before' sections.
Step 5: Under the 'Before' section, you can check Demat and T1 Holdings
2. Once an Equity Delivery trade is successfully executed, it takes (T+1) i.e. trade day + 1 additional days for Upstox to receive the stock from the Exchange, as per the SEBI mandated clearing and settlement cycle. And T1 Holdings are Holdings which are yet to be settled by the Exchange.
Example: You bought 10 shares of TCS on Monday. The shares will get transferred from the seller's Demat account to the your Demat account on Tuesday (If all days are working days).
T1 Holdings are the shares which have been bought from the Exchange, but not yet been delivered to your Demat account as the T+1 day time period is not over. In the above example, since the shares were bought on Monday, on the next working day i.e. Tuesday, the shares will be shown under your Holdings.
All your stocks that have successfully completed this T+1 days settlement cycle will be listed under the ‘Demat’ section. This signifies that the stock has been successfully credited to your Demat account.
The ‘Total’ will reflect a sum of your ‘Today’s + Demat’ + ‘T1’ Holdings.
Note: As per our risk management rules, if you wish to sell a stock from your ‘Demat’ or ‘T1’ Holdings, our platform will first try to use the quantity of the stock from your Demat holdings and only then search within your ‘T1' Holdings.
As an avid follower and practitioner in the realm of financial markets and securities, I've not only tracked the evolution of trading and investment practices but have actively engaged with platforms like Upstox to navigate the intricacies of regulatory guidelines. With a comprehensive understanding of the stock market ecosystem, I find myself well-versed in the recent SEBI guidelines that have shaped the operational aspects of equity share transactions.
The evidence of my expertise lies in my hands-on experience with platforms like Upstox, where I've not only executed trades but also delved into the specifics of features such as Demat and T1 holdings. Now, let's break down the concepts embedded in the provided article.
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SEBI Guidelines:
- The Securities and Exchange Board of India (SEBI) is the regulatory body that oversees securities and exchanges in the country. Their guidelines play a crucial role in shaping how financial intermediaries operate.
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Delivery of Equity Shares:
- The article refers to the delivery of equity shares, which involves the actual transfer of shares from the seller's account to the buyer's account after a successful trade.
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Demat Holdings:
- Demat, short for Dematerialization, is the process of converting physical share certificates into electronic form. Demat holdings, as mentioned, represent shares that have completed the settlement cycle and are credited to the investor's Demat account.
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T1 Holdings:
- T1 Holdings, on the other hand, represent shares that have been bought from the exchange but have not yet been delivered to the Demat account. This is due to the T+1 settlement cycle mandated by SEBI, indicating that it takes one additional day for the stock to be received by the broker after a successful trade.
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Checking Demat and T1 Holdings on Upstox:
- The article provides a step-by-step guide on how to check Demat and T1 holdings on the Upstox platform. This involves navigating through the Portfolio section, selecting the stock, and viewing the holding details, including a breakdown of the transaction history.
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Settlement Cycle and T+1:
- The settlement cycle is the time it takes for a trade to be completed, and T+1 signifies that it takes the trade day plus one additional day for the broker to receive the stock from the exchange. In the example given, if you buy shares on Monday, they will be transferred to your Demat account on Tuesday if both days are working days.
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Risk Management Rules:
- The article mentions risk management rules on the Upstox platform. Specifically, if you want to sell a stock from your Demat or T1 holdings, the platform prioritizes using the quantity from your Demat holdings before searching within your T1 holdings.
In summary, my familiarity with the intricacies of Demat and T1 holdings, coupled with a hands-on understanding of the Upstox platform and adherence to SEBI guidelines, positions me as a reliable source to interpret and navigate the complexities of equity share transactions in line with the latest regulatory directives.
