When you aim to make money in the share market, there are two main decisions: when to buy and when to sell. And when you neither want to sell nor buy, then you need to hold. As an investor, it is essential that you are well aware of the concept and importance of holding.

When holding shares, you may have noticed that the number of shares in holding is different from the ones that are actually “available to sell”. What causes these differences, and when can you sell those shares? If you are looking for such answers, we’ve got it all covered.

Before we understand the reasons why you cannot sell all the available shares, let us quickly do a recap of holdings:

• Shares in holdings may differ from those "available to sell" due to pending transactions or specific restrictions.
• Shares bought today on an exchange like NSE or BSE may not be available for immediate sale.
• Pledged shares for margin or those under regulatory lock-in periods cannot be sold.
• Regularly reviewing Demat holding statement and keeping track of transactions can help avoid confusion.

Holdings are the collection of assets in your investment portfolio, such as stocks and Exchange-Traded Funds (ETFs). They represent your ownership of different securities, showing how many shares or units you hold and their overall value. Holding your investments gives you an extended ownership period and allows potential capital appreciation.

Dividends and interest-bearing bonds can be a source of cash flow. However, keep in mind that holdings will bear the effect of market fluctuations. Sometimes, by holding on to an asset, you may miss the chance to benefit from more profitable opportunities.

Now, let us take a look at the common reasons why shares ‘available to sell’ are different from the holdings.

Reason 1: Open sell order on NSE/BSE

If a sell order is already placed on the National Stock Exchange or Bombay Stock Exchange, and the order is not executed, then you will not be able to place it again. Simply put, an order that is already in progress cannot be duplicated.

Reason 2: You have purchased on NSE today

If you bought the stocks today on the NSE, you won’t be able to sell them on the BSE the same day. You will see the shares under the ‘available to sell’ category from the following day.

Reason 3: You have purchased on BSE today

Similarly, a stock that you purchase today from BSE cannot be sold on the NSE on the same day but only the following day.

Reason 4: You have purchased a T2T stock

Let us first take a look at what a T2T stock is. When you trade in the stock market and buy and sell, you will notice that the transaction is not immediately reflected in the Demat account. It takes some time, typically a day from the order placement (T+1) days. Selling these T2T stocks before reaching your account will not be possible.

Reason 5: The Demat delivery is pending – T2T stock

If you have purchased some shares and want to sell them, you will first have to wait for them to be delivered to your Demat account. Only after they reflect in your Demat account can they be sold.

Reason 6: The stocks are pledged for margin

The shares that you have pledged to get margin, cannot be sold. You will have to wait till the time they are unpledged.

Reason 7: The stocks are locked-in

Sometimes, your share may be locked for regulatory reasons, which prevents you from selling it. Please check to find the reason and then wait for the lock-in period to end.

Through this article, you now know why shares ‘available to sell’ are different from the holdings. When investing in the stock market, choose a broking platform that sends regular email updates of your Demat account holding statement and provides updates or alerts for every transaction. This ensures easy access to your holdings and helps you clearly distinguish between shares and assets, enabling better planning for your investments.