How are shares settled in a BTST transaction?

In a Buy Today Sell Tomorrow (BTST) transaction with TradeJini, you can sell shares before they are delivered to your demat account.

These transactions follow a settlement process where shares are credited to your account on the day they are received from the Clearing Corporation (CC). Simultaneously, they are earmarked for delivery against the sale conducted on the same day.

Example Scenario:

Let’s say you bought 100 shares of Reliance on Monday and sold them on Tuesday. Following the T+1 settlement cycle, the shares are transferred to your demat account on Tuesday. On the same day, TradeJini will earmark these 100 Reliance shares against the sale made on Tuesday. The actual debiting of these shares from your account occurs on Wednesday (T+1 from the sale on Tuesday).

By first transferring the shares to your account, then earmarking and debiting for sale settlement, TradeJini ensures that you receive credit for all corporate actions directly in your name. Additionally, any TDS deducted for dividends is filed against your PAN and reflected in your 26AS, avoiding passing through the broker’s PAN.

Since the shares are credited to your demat account and then debited for BTST transactions, DP charges will apply, similar to normal delivery transactions.