Early Pay-in is a process where traders can fulfill their trade obligations—either in funds or securities—before the standard settlement date. At FYERS, this mechanism helps reduce margin requirements and facilitates faster, more secure trade settlements.
What does Early Pay-in involve?
Normally, settlements occur on T+1 for equity trades. With Early Pay-in:
- You deliver the shares or funds on the same day the trade is executed (T day)
- The exchange receives your settlement obligation ahead of time
- Your required margin for that trade is reduced
Example
- You sell 100 shares of HDFC Bank on Monday via FYERS
- The usual settlement is Tuesday (T+1)
- FYERS marks these shares for Early Pay-in the same day (Monday)
- The exchange receives the shares early, and your margin requirement reduces
Benefits of Early Pay-in
- Lower margin requirements on trades where obligations are fulfilled early
- Faster settlement with fewer chances of default or auction
- Operational efficiency for high-frequency traders or institutional accounts
Early Pay-in is automated by FYERS when your holdings are available. You don’t need to initiate it manually.
What if...
| Scenario | Outcome |
|---|
| I sell shares I already hold | FYERS may mark them for Early Pay-in automatically. |
| I use intraday margins | Early Pay-in doesn’t apply; it's for delivery trades. |
| I don’t have shares in my Demat | No Early Pay-in—short delivery penalties may apply. |
Last updated: 24 Jun 2025
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