Now that you have moved to Coin, is there any change in how long one has to wait after selling MF units and use the proceeds to buy stocks?
Ideally, you should let clients sell MF and buy stocks on the same day as payout of MF will happen on the same day as pay-in of stocks so these two should settle together.
Even if MF payout is after stocks pay-in, you should provide margin funding for those days (should not be more than 2-3 days or even less for liquid funds). This will help clients take advantage of opportunities in equities and you will earn interest.
Long long term investors regularly move between equity and debt depending on valuations and opportunities in equity markets. However, if I have to wait for my MF payout before buying stocks, the opportunities in stocks will go away (or substantially erase) as stocks are much more volatile than debt funds. Its high time technology brokers like Zerodha do seamless settlement between various entities.
As a broker, you should provide seamless transactions across all the securities (equities, derivatives, MF, currencies and commodities etc) irrespective of which entities these transactions are settled with.