Early Pay-In by Flattrade:
At Flattrade, we execute an Early Pay-In (EPI), which is we provide securities (in the event of a sale trade) or cash (in the event of a purchase trade) to the clearing corporation of the exchange prior to the settlement date—typically on the day of the trade (T) rather than T+1.
To be more precise, we deliver the securities or funds to the exchange within 3 minutes to the exchange which is very quick and remarkable for any brokerage presently.
Why Early Pay-In is executed by us?
To Reduce Margin Requirements:
- When the broker pays ahead, the exchange provides margin benefit (reduced margin requirement) for the trade.
- Example: Rather than tying up 100% of the sell trade as margin, it might only be 20-25% in case of early pay-in.
To Avoid Short Delivery Risks:
- Early delivery ensures that the client’s sold shares are already with the exchange, so there’s no possibility of short delivery or auction penalty.
For Client’s Benefit:
- If shares of a client are already with the broker under its Demat POA (Power of Attorney) or through TPIN authorization, the broker can automatically get an EPI done on the client’s behalf.
- This makes selling smooth and enables quicker settlement.
To adhere to SEBI Regulations:
- Since 2020, SEBI mandates brokers to obtain upfront margins.
- Early pay-in assists brokers in fulfilling margin obligations more conveniently.
Early Pay-In implications of DP in Flattrade:
DP charges are levied when someone sells shares as they get debited from one’s Demat account. At Flattrade, we charge of ₹20 per Debit Transaction + applicable GST. Also, DP charges are levied on multiple orders that are executed after 3 minute window.
For e.g. If a person named X executes multiple orders within 3 minute window, then no DP charges are separately levied. But, if X places multiple orders in a day at 10.00 AM, 11.00AM, 12.00PM etc. then for each time, DP charges of Rs.20 + applicable GST is levied. For further clarifications, please call our team to understand on these charges.
Note : This is charged by the depository (CDSL) and depository participant.
Disclaimer: Investments in the Securities market and Mutual Funds are subject to market risks. Read all the related documents carefully before investing | The securities are quoted as an example and not as a recommendation | Brokerage will not exceed the SEBI-prescribed limit | Margins will be collected as per the exchange norms.
