The Stock market faces almost 1000 crores transactions every single day. Some of the examples of these transactions are T2T, intraday trading, and block deals. All these transactions do not settle on the same day meaning, that the actual delivery of the shares is pending and will be settled on the next day on a T+1 basis.

So, when you place a sell order on your phone, you may notice that the shares “available to sell” differ from their actual holdings.

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This discrepancy mainly arises because of the settlement criteria but can also arise due to the following reasons:

• Existing Sell Order on NSE/BSE: If you have already placed a sell order on NSE or BSE and it remains open and unexecuted, you cannot initiate another sell order for the same shares until the first one is processed or cancelled.
• Shares Bought Today on NSE: Stocks purchased on NSE today cannot be sold on BSE the same day. You will be able to sell them only on the next trading day.
• Shares Bought Today on BSE: Similarly, if you’ve bought shares on BSE today, you cannot sell them on NSE the same day. Selling will be possible from the next trading day.
• Trade-to-Trade (T2T) Stocks Purchased Today: Stocks classified as T2T cannot be sold on the same day they are bought. You can only sell these stocks once they are delivered to your demat account which is normally on a T+1 basis.
• Pending Demat Delivery for T2T Stocks: If the stock you wish to sell is a T2T stock, it must first be delivered to your demat account. Selling is only permitted after delivery is complete.
• Pledged Shares for Margin: Shares that have been pledged as collateral to obtain margin cannot be sold until they are unpledged. Ensure you release the pledge before placing a sell order.
• Shares Under Lock-In Period: Certain shares may be under a regulatory lock-in period. These can only be sold once the lock-in restriction is lifted. Check the issuing company’s announcements for details about the lock-in duration.

Let's look at the common types of transactions that take place in the stock market:

• Trade-to-Trade: Transactions in this category mandate the physical delivery of shares to promote long-term investment strategies. T2T stocks cannot be traded intraday or used for short selling.
• Intraday Trading: These shares are bought and sold on margin within the same trading session. If you buy these shares, you must sell it on the same day otherwise these shares are automatically squared off.
• Block Deals: These are high-value transactions that involve at least 5 lakh shares or a monetary value of Rs 5 crores. These transactions are restricted to a specific time window between 9:15 a.m. and 9:50 a.m.
• Forward Contracts: These are derivative contracts. They legally bind two parties to buy or sell an asset at a predetermined price on a specific future date.
• Initial Public Offering (IPO): The process by which a company offers its shares to the public for the first time to raise capital.
• Secondary Market Offerings: These transactions occur when companies or existing shareholders sell additional shares to the public after the IPO phase.
• Private Placement: A method where a company sells its securities directly to select investors, such as institutions or high-net-worth individuals, bypassing the public markets.
• Stock Repurchase: Also known as a buyback, this is when a company buys back its own shares from the market to reduce the number of outstanding shares.

Conclusion

The stock market is a complex arena and involves various types of transactions. If you give your holdings 1 day to settle, you will be able to sell your shares the next day. However, if you wish to sell those shares on the same day, it’s better to enter into intraday transactions.

Understanding these smaller details of the stock market will help to improve your efficiency in the market.

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