STBT and why Zerodha does not allow it

Mon, 11 May 2026 00:00:00 +0000

STBT (Sell Today Buy Tomorrow) refers to a trading strategy in which a market participant sells equity shares today without owning them and buys them back on the following trading day, profiting from an anticipated fall in the share price overnight. In contrast to BTST (Buy Today Sell Tomorrow), which is mechanically feasible under India’s settlement system, STBT is not permitted for retail investors in India’s equity cash segment under current SEBI regulations. Zerodha, in accordance with these rules, does not provide STBT functionality on its Kite platform.

STBT on WebNotes

STBT and why Zerodha does not allow it