How to Sell Stocks in India
Selling stocks in India is as simple as buying them. You log into your broker's platform, select the shares you want to sell from your holdings, place a sell order, and the proceeds are credited to your trading account after settlement. The process takes just a few minutes.
Step 1: Log Into Your Broker Platform
Open your broker's app or website and navigate to your portfolio or holdings section. This shows all the shares currently held in your demat account along with their current value and profit or loss.
Step 2: Select the Stock to Sell
Click on the stock you want to sell. You will see the option to place a sell order. Check your average buying price and the current market price to understand your profit or loss before selling.
Step 3: Place a Sell Order
Specify the following when placing your sell order:
- Quantity: How many shares you want to sell
- Order type: Market order (sell at current price) or Limit order (sell only at your specified price)
- Exchange: Usually the same exchange where you hold the shares (NSE or BSE)
Step 4: Confirm the Order
Review the details and confirm. Market orders execute immediately during market hours (9:15 AM to 3:30 PM IST). Limit orders wait until the market price reaches your specified target.
When Are the Proceeds Credited?
After selling, settlement happens in T+1 days (one business day). The sale proceeds are credited to your trading account and then transferred to your linked bank account. Some brokers allow instant bank transfer after selling.
Tax Implications on Selling
When you sell stocks, you may be liable for capital gains tax:
- If held for less than 12 months: Short-term capital gains tax at 20%
- If held for more than 12 months: Long-term capital gains tax at 12.5% on gains above Rs 1.25 lakh per year
- STT (Securities Transaction Tax) is automatically deducted at the time of selling
When Should You Sell?
Sell when the business fundamentals have changed negatively, when your financial goal has been reached, or when you find a significantly better investment opportunity. Avoid selling out of fear during temporary market corrections.
Key Takeaway
Selling stocks in India is a simple process through your broker's platform. Understand the tax implications, choose the right order type, and avoid selling based on short-term market movements. Track your portfolio and make informed sell decisions using the Lemonn app.
