At FYERS, we use Early Pay-in (EPI) to make equity settlements faster and safer. When you sell shares that you already hold, we can deliver those securities to the exchange on trade day (T) instead of waiting until T+1. This helps reduce margin requirements and significantly lowers the risk of short delivery, auctions, and penalties.
What Is Early Pay-in?
Early Pay-in is the advance fulfilment of your settlement obligation—either by delivering securities (for sell trades) or funds (for buy trades)—before the standard settlement day.
- Standard equity settlement in India follows a T+1 cycle.
- With EPI, FYERS sends your obligation to the exchange on T, ahead of the standard schedule.
- For sell trades, this typically reduces or removes the margin requirement on that position.
How Early Pay-in Works at FYERS
- You place a delivery sell order (CNC/Delivery) for shares already available in your FYERS Demat.
- We verify that those shares are free (not pledged or under lien) and settled.
- We mark your trade for Early Pay-in and deliver the shares to the exchange on T.
- The exchange confirms EPI, and margin benefits are applied.
- Final settlement still occurs on T+1, but your margin use and delivery risk are reduced from T itself.
Note: EPI is managed automatically at FYERS when conditions are met. You don’t need to initiate it manually.
Example (Sell Delivery with EPI)
- You sell 100 shares of HDFC Bank on Monday (T).
- Normally, those shares would be delivered on Tuesday (T+1).
- Since the shares are already settled in your FYERS Demat, we mark them for EPI on Monday.
- The exchange receives the shares early, and your margin requirement reduces for that trade.
Benefits of Early Pay-in
- Lower margin requirement for eligible sell trades once confirmed by the exchange.
- Lower short-delivery risk because shares are delivered in advance.
- Better operational efficiency for frequent or high-volume traders.
How Early Pay-in Helps Avoid Short Delivery
Short delivery happens when a seller can’t deliver shares by the settlement date (T+1). By moving delivery to T, Early Pay-in helps by:
- Reducing dependency on T+1 transfers.
- Eliminating most risks of delivery shortfall or exchange auction.
- Protecting you from potential auction and close-out penalties.
Best Practices to Avoid Short Delivery (Beyond EPI)
Verify your holdings before selling
- Make sure shares are settled and free in your FYERS Demat.
Avoid selling unsettled (T+0) buys
- Selling on the same day you buy can cause settlement gaps.
Square off intraday shorts early
- EPI does not apply to intraday (MIS) trades. Exit before the RMS square-off window.
Be mindful of liquidity and circuits
- If a stock hits a circuit limit or is illiquid, your sell order may not execute.
Check your FYERS platforms regularly
- Holdings: confirm free quantity.
- Positions: track and close open intraday shorts in time.
Troubleshooting
- My sell order still shows margin blocked even with holdings: The exchange releases margin benefit only after confirming EPI. If shares were unsettled or pledged, the benefit won’t apply.
- EPI didn’t apply even though I had shares: This happens when holdings are unsettled, pledged, or not yet credited to FYERS Demat.
- I received a short-delivery or auction debit: This means the exchange had to procure shares via auction or close-out. Review your contract note or ledger, or contact our support for clarification.
Tip: Use the Holdings tab on FYERS Web, App, or Trader to confirm that the same ISIN quantity is free and settled before placing a delivery sell. This quick check helps prevent short delivery.
Important: Early Pay-in depends on exchange confirmation and eligibility of your holdings. If EPI cannot be processed (for example, if shares are unsettled or pledged), the trade settles under the standard T+1 cycle and normal margins apply. If you’re unsure about your eligibility or need help understanding EPI-related entries, contact our support.
What If…
| Scenario | Outcome |
|---|
| I sell shares that are already settled | We usually mark them for EPI on T; margin reduces after exchange confirmation. |
| I try to rely on EPI for an intraday (MIS) trade | Not applicable — EPI applies only to delivery (CNC) trades. |
| My shares are pledged or under lien | EPI cannot be processed until they are unpledged and free. |
| I sell shares I bought the same day | The new buy is unsettled — selling it may cause short delivery and auction. |
| I don’t see margin benefit yet | Margin benefit is applied only after the exchange confirms EPI. |
| I’m unsure whether EPI applied | You can check your contract note or contact our support for assistance. |
Last updated: 04 Nov 2025
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