Yes, margin is applicable for both buy and sell transactions in the Cash Segment. As you are aware, settlement of transactions in the Cash Segment is on T+1 day basis, accordingly the upfront margin of the trades done on T’day should also be maintained on T day. Further, the additional/ other margin and MTM is due and collectible by T+1 day.In view of the above, the impact of margins in cash segment on sale of 100 shares of Reliance provided as collaterals is explained in example below: -: -

Particulars	Beginning of the Day Position	Pre-Cash Margin Collection Scenario {on sell of 100 Reliance}	Post-Cash Margin Collection Scenario {on sell of 100 Reliance}
Scrip	RELIANCE	RELIANCE	RELIANCE
Qty	1000	-100	-100
Rate	1000	1000	1000
Value	1000000	-100000	-100000
IIFL Haircut	20%	20%	20%
Exchange VAR + ELM + Adhoc	17.50%	17.50%	17.50%
Margin Available	800000	800000	800000
Margins Blocked / Applicable on sell of 100 RELIANCE	-	0	-17500
Margins Released on sell of shares	-	20000	2500
Balance Margin Available	800000	820000	802500

Accordingly, as per the exchange circular for margin collection and reporting in cash segment, as can be seen in the above example the margins will be released after considering applicable margins (i.e. VAR + ELM + Adhoc margin requirement as per exchange).