Hi Members
2) How is BTST different from a normal buy/sell? Are the brokerage charges different for this ??
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------- Information as available on https://secure.icicidirect.com/trading/equity/btst_faq.asp
What is Buy Today Sell Tomorrow (BTST) ?
Buy Today Sell Tomorrow (BTST) is a facility offered by ICICIDirect wherein the customer will be able to sell the shares that he has purchased even before he receives the delivery of the shares from the Exchange. He will not have to wait till the time he receives the delivery from the Exchange thus increasing his liquidity.
Sale in BTST is permitted only till on T+1 (and not on T+2 i.e. pay-in/pay-out date of the Exchange). In other words, BTST shall be permitted only up to the day prior to the scheduled payout of shares from the Exchange.
How does the customer place an order in BTST ?
The customer can place an order in BTST by going to the Security Projections page and clicking on the BTST Sell Hyperlink. The rest of the details which are required to be filled up are similar to that of a normal sell order.
What are the maximum number of shares that the customer can sell under BTST ?
You can see the maximum number of shares which can be sold under BTST under the column Maximum Quantity Permitted against the corresponding settlement number. This is being calculated by ICICIDirect after considering your buy position in the corresponding settlement and also on ICICIDirect's internal risk profile of that particular stock.
On the placement of a BTST order, the order quantity is added to the existing blocked quantity, if any, and is shown as the blocked quantity in the security projections. The Available quantity now gets reduced by the blocked quantity. The customer can then place further BTST order/normal sell order for the available quantity.
Can BTST facility be used even when the current settlement is going on ?
BTST facility can be used only in case the settlement in which the shares have been purchased is over.
How many scripts are available for BTST ?
Currently all S&P CNX NIFTY and CNX NIFTY JUNIOR scrips are available in BTST. ICICIdirect can at its sole discretion add scrips or delete scrips to this existing list of scrips for which BTST would be permitted.
What will happen in case the delivery for shares sold by the customer is not received from the exchange ?
BTST is a facility whereby the customers are being allowed to sell their shares against their receivable position in the same shares from the same Exchange. However, in case there is a short delivery from the Exchange for the earlier buy transaction, then the BTST customers will also be giving short delivery for their sell transaction. The Exchange would either give delivery of shares bought earlier through market auction or shall closeout the buy transactions as per the Exchange Regulations. However, this would not help the customer in meeting his sale delivery obligations already committed by him as even if he receives the shares bought earlier through auction settlement, by that time the securities pay-in date for his sell transaction would be over. In such case, the customer will have to face auction proceedings against his sale transaction and will have to bear the auction losses, auction penalties and any other incidental charges etc.
Exchange does not net off subsequent sell transaction against the previous buy transaction across the settlements and all the settlement obligations are settled settlement wise.
All cost and consequences of any auction arising out of such BTST sell transactions shall be fully borne by the Customer and ICICIdirect would not be held responsible for any such short delivery received by the customer and the consequential impact thereof.
In case of short delivery, ICICIDirect will reduce the limits of the customer to the extent of the likely auction
-----End of Information as available on https://secure.icicidirect.com/trading/equity/btst_faq.asp
" BTST is offered on select shares... you can check with ICICI Direct for the latest list"
When you buy stocks from this list, it can be in Normal mode and gives you chance to square off if you want so before market closes. Non squared of positions of these stocks (about 75%-- Check with ICICI Direct) are available as BTST stocks in your next days positions which you can sell as BTST stock. I think you can sell also the balance 25%, the day after ( check with ICICI direct customer care).
BTST is by its name itself suggest that it is buying to day and selling tomarrow -- meaning it is as if you are taking delivery of the stock and selling from the delivery stock, hence the brokerage will be same as delivery stocks
as per the rate you have negotaiated with ICICI direct (it will be charged at the same rate for buy and as well as sell)
Usually, if you buy a BTST stock today, and wish to sell tomarrow, you should be able to sell in Normal mode (note you can sell only a percentage of stocks and not full buy positions) -- and ICICI Direct should take care of accounting for the sell as BTST even if you have not marked it as BTST when you sell. (I trade using Kotak and they take care automatically at the end of the DAY by looking at my available positions and adjusting for sell positions.
You need to very careful when you sell any stock which is not squared off on the same day or which you donot a have buy position --- will result in short selling by you and exchange will block about 150% of the money as margin from your account for the sell trade value and the shares will be auctioned and you will end up paying penalty.
I hope these explanation suffices.
Happy trading
