Selling shares is a part of standard stock trading, but to new investors, it can be puzzling to use a trading platform like Zerodha. Zerodha and its trading app Kite make the experience simpler with an easy interface and fast execution.
This blog discusses how to sell shares through Zerodha, including the requirements, step-by-step procedure, settlement information, and important points to remember.
Introduction
Zerodha is now one of the most popular discount brokerage companies in India due to its cheap model and easy-to-use platforms. For everyone who has shares in their Demat account through Zerodha, being able to sell them efficiently is critical be it to book profits, reduce losses, or balance your portfolio.
Knowing how to utilize the Kite platform from Zerodha can be a huge difference maker, particularly when trying to time the market or handling intraday positions.
Requirements for Selling Zerodha Shares
Prior to selling shares in Zerodha, there are certain requirements to be fulfilled –
- You should have a Zerodha Demat and trading account.
- You should have shares to sell which are already deposited in your Demat account.
- Your KYC should be in place.
- You should have proper access either through the Kite web or the Kite mobile application.
If you have just bought shares and want to sell them, see that they have been delivered (T+2 days for delivery-based trades). But in intraday trading, you can purchase and sell on the same day.
How to Sell Shares in Zerodha (Delivery-Based)?
Let’s follow the steps through Zerodha’s Kite platform –
Step 1. Log In to Kite
Open the Kite web platform or the mobile app. Enter your User ID and password, followed by the 2FA PIN.
Step 2. Check Holdings
Click on the “Holdings” tab to see the stocks that are currently in your Demat account. This area displays your portfolio, average buy price, and current market value.
Step 3. Choose the Share You Wish to Sell
Choose the share you wish to sell from among your holdings. Click on the “Exit” or “Sell” button. This directs you to the order window.
Step 4. Complete the Sell Order Details
You will notice several fields in the order window –
- Quantity – Specify the number of shares you wish to sell.
- Order Type – Market (sells at prevailing market price) or Limit (sells at your desired price).
- Product Type – Select CNC (Cash & Carry) for delivery-based trades.
- Validity – Select DAY (good till the end of the day) or IOC (Immediate or Cancel).
Click Sell when ready.
Step 5. Order Execution
If it’s a market order, the shares will be sold virtually instantly at the current best available price. For limit orders, however, the sale only occurs when the market reaches your price.
You can monitor the status in the Orders tab.
How to Sell Shares in Zerodha (Intraday)?
For intraday trading, the process is the same but with minor differences in product choice –
- Utilize the MIS (Margin Intraday Square off) product type.
- Make sure you square off (close the position) prior to 3:20 PM on the same day of trading, or Zerodha will auto-square off for you.
- Intraday gains/losses are credited/debited the same day, but settlement of funds occurs on the following trading day (T+1).
Settlement and Credit After Selling Shares
When you sell shares from your Demat account (CNC), the amount is not credited immediately. Under SEBI’s T+1 settlement system –
- T+1 day – Your sale amount will be credited to your Zerodha account balance.
- You can withdraw money once it shows as withdrawable balance, usually after 1 trading day.
For intraday trades, gains are shown sooner, but withdrawals are permitted only after settlement is finalized.
Tips for Selling Shares Efficiently
Though the mechanics are straightforward, here are a few points to remember –
- Use limit orders during volatile markets to prevent unexpected price falls.
- Watch stock movements and volume prior to selling you might lose better exit opportunities.
- Look at GTT (Good Till Triggered) orders on Kite for auto-sell triggers.
- Don’t panic sell. Make decisions based on your investment goals, not noise in the short term.
- Use Kite’s charting tools or indicators like RSI and MACD if you’re more advanced.
Charges and Tax Implications
When you sell shares on Zerodha, some charges and taxes are levied –
- Brokerage – Rs 0 for delivery of equity, Rs 20 or 0.03% (lower of the two) for intraday.
- STT (Securities Transaction Tax) – 0.1% on the sell side for delivery, 0.025% for intraday.
- Transaction Charges, GST, Stamp Duty, and SEBI charges are also levied.
On the tax side –
- Short-Term Capital Gains (STCG) – 15% on gains if shares are sold within 12 months.
- Long-Term Capital Gains (LTCG) – 10% on excess gains over Rs 1 lakh in a year (if over 12 months old).
All gains/losses should be reported in your Income Tax Return (ITR).
Common Problems During Selling and How to Correct Them
- Shares Not Available in Holdings – Shares purchased recently could take T+2 to show. Hold off selling until settlement.
- “Insufficient Holdings” message – This is possible if you have already pledged the shares or are still in lock-in. Find information on your Console dashboard.
- Order Not Fulfilled – Limit orders will stay pending if the market price doesn’t hit your designated sell price. Think about revising or changing to a market order.
Conclusion
Selling shares in Zerodha is a straightforward and transparent process provided you grasp the fundamentals. Whether you are selling for profit booking or risk reduction, trading via the Kite platform allows you to do so with little friction. While placing a sell order is made relatively simple by technology, what truly counts is the intent behind it the alignment of the timing, price, and approach with your investment objectives.
As Zerodha keeps expanding its ecosystem with additions such as GTT, SIPs in stocks, and improved analytics, mastering how to use it to the fullest can provide retail investors with a genuine advantage in self-directed investing. Just be sure to stay educated, stay disciplined, and approach every sales decision as a strategic choice, not an emotional response to market noise.
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