The growth of the Indian economy has revitalised the stock market as new investors enter the capital market in large numbers. For instance, in June 2025, the number of demat accounts surged by 2.5 million. However, a more interesting trend has emerged in the form of a SEBI study published in July 2024, which highlights that one in three investors in the equity cash segment are intraday traders.
Intraday trading facilitates using short-term market opportunities to make profits, thereby increasing the risk profile. It is the process of buying and selling stock within one trading day.
While the concept of intraday trading is well-known, a closer look at the nuances is required. One such overlooked aspect, especially for beginners, is intraday profit credit. Therefore, this blog explores when intraday profit is credited in detail.
When Is Intraday Profit Credited?
As per SEBI regulations, intraday trading profits are credited to your account on the next trading day after the trade settlement. Once an intraday trade is executed, two steps ensue, namely clearance and settlement. Under the clearance system, the transaction is verified, and the net obligation is ascertained. Finally, in the next step, the trade is settled, and the profit, if any, hits the bank accounts.
A SEBI circular, effective from 1 March 2021, laid out the timeline of intraday trade settlement. It ascertained a timeline within which the profit generated from an intraday transaction will be reflected in the respective accounts.
The timeline is divided into three categories. Moreover, to optimally understand when is intraday profit credited, let us take an example.
Suppose Mr V made the following transactions on 18 July 2025.
| Number of shares | Market value (₹) | Buy / Sell | Total Value (₹) |
| 10 | 100 | Buy | 1000 |
| 25 | 75 | Buy | 1875 |
| 30 | 150 | Sell | 4500 |
| Profit from the total operation | 1,625 | ||
Now, through various money-making in intraday strategies, he earned a profit of ₹1,625 will be credited for use of Mr V on different days based on the actual date of the intraday transaction (T).
- T Day Falls On a Weekday
If the transaction day (T-Day) was a weekday, then the profit would be credited at 3.30 PM of the following day (T+1 Working Day), provided that it is also a working day. So, in the above example, if 18 July and 19 July 2025 are working days, then the profit earned on 18 July 2025 will be available for use from 3.30 PM on 19 July 2025.
But what if the T-Day is a working day, but T+1 is a weekend or a holiday?
- Friday is the day T Day falls
In case the transaction day is a Friday, then the two days following it are weekends. In such a scenario, the profit is credited on the next working day. So, if 18 July 2025 was a Friday, then the funds would be accessible on 21 July 2025, which would be a Monday.
Now, rather than being a two-day weekend, the date of settlement might also fall on a holiday.
- Market Holiday
This scenario follows the suit of Friday. If the transaction day follows any holiday, then the profit is credited and available for use on the next working day. For example, if 18 July 2025 follows a three-day holiday, then the market opens again on 22 July 2025. Therefore, the profit in this case would be credited on 22 July 2025.
However, the question of when is intraday profit credited doesn’t settle till we get a comprehensive picture from the commencement of a trade to the credit of profit.
What happens when you sell a stock in intraday trading?
Before the market closes, all intraday positions must be closed. If a position is not closed manually by the trader, it is closed automatically by the seller. Closing a position implies executing the opposite trade. Like, selling stocks that were bought.
This is done because intraday trade implies buying and selling within the same trading session. Therefore, once a trade is closed, the following steps ensue.
- Profit or Loss Realisation: The difference between the buy and sell price after adjusting the costs associated with trading, yields a profit or loss. Since all positions are closed before the conclusion of the trading session, there is no delivery of stock to the demat account.
- Settlement: Although the profit is booked instantly, it doesn’t reflect instantly. If the transaction occurs on T-Day, the amount is available at 3.30 PM of the next working day, that is T+1.
How to Check Credited Profits
Investors can easily check the profit credited through their brokerage platform. The following steps can aid in this process.
Step 1: Access the trading account through the official brokerage application or website.
Step 2: Navigate to the account balance section. While the name of this section might differ from platform to platform, it typically reflects the available funds in the wallet.
Step 3: A trader can even check his account statement or ledger, which shows the detailed transaction history, to note the nature of the credit.
Although validating credit is crucial, it is not enough. Staying updated with current changes to intraday trading regulations is necessary to ensure optimal decision-making and compliance.
New Intraday Rules by SEBI
In a circular dated 28 March 2025, SEBI laid out new rules to be followed for monitoring intraday operations. There are three aspects to this circular.
- Monitoring Intraday Positions
Stock exchanges shall monitor intraday positions not just at the end of the day but throughout the trading session. Random oversight during the trading day, not just at the conclusion, is aimed at reducing malpractice. This became effective from 1 April 2025.
- No penalty
Although the new monitoring mechanism has kicked in, there won’t be any penalty on breach of existing position limits and other such breaches till further notice.
- Joint SOP
A joint statement of purpose must be prepared by the exchanges to inform market participants about mechanisms of monitoring, position limits, impact of breaches and much more.
Conclusion
Understanding when is intraday profit credited is crucial for exploring the timeline of trading. It aids in understanding when funds are credited to the account, which in turn helps in optimal fiscal planning. Intraday trading in itself involves high stakes, resulting in optimal analysis of funds and thorough research of the mechanism. Without complete knowledge about the trading methodology, investors might find it difficult to optimise the portfolio. Currently, profits are credited on the working day following the actual day of the transaction. Investors can check their credit through the brokerage platform and validate returns.
FAQs
No, intraday gains can’t be employed for same-day transactions. Based on SEBI guidelines, earnings from intraday trading are normally remitted to the account of the trader on the next working day. This implies that while the profit is booked within the same day, the money will not be accessible to be employed in new transactions until the next trading day. For example, if a trade is closed on Monday, it will be available after 3.30 PM on Tuesday.
According to the SEBI norms, the profit is credited to the account of the investor at 3.30 PM on the working day following the transaction day. Therefore, in case the following day is a holiday, the credit will happen on the working day immediately after the holiday. For instance, if an intraday trade happens on Monday, it is to be closed on Tuesday. However, if Tuesday is a one-day holiday, the credit will happen on Wednesday, 3.30 PM.
In the case of the intraday timing, there are no differences between the brokers, because they act according to the SEBI guidelines. However, in the case of intraday margins, there might be some differences. These variations mostly concern the types of schemes available. While some brokers may have more competitive brokerage fees or varied plan structures that accommodate different trading styles, others may provide larger leverage (margin) on intraday transactions.
Indeed, the T+1 credit policy for intraday trading gains must be adhered to by all brokers in India who are registered with SEBI. This implies that intraday transaction earnings are blocked on the day of the trade (T) and are only unblocked (credited for usage) on the next working day (T+1), following the market closing. This norm, which is applied consistently throughout the brokerage sector, is the outcome of a regulatory mandate by SEBI.
Yes, your available amount is automatically reduced if you suffer an intraday trading loss. When a loss is incurred in an intraday transaction (purchase price of the trade is more than the sell price), the sum is instantaneously displayed in the trading account. In contrast to gains, which are blocked and awarded only after settlement on T+1, you are unable to employ the loss amount for further transactions.
