What does T+1 Settlement cycle mean?

T+1 Settlement Cycle for Indian Stock Exchanges

Until January 27th, 2023, Indian Stock Exchanges followed a T+2 settlement cycle for equities and T+1 for F&O. However, starting from January 27th, 2023, all instruments in the Cash segment have moved to a T+1 Settlement Cycle.

What is a Settlement Cycle?

The settlement cycle refers to the time taken for a trade to be settled. For all instruments traded on Indian stock exchanges, the settlement cycle is T+1 working day, where "T" stands for the trading day.

Example (Cash Segment):

Buying of Shares:

  • Shares are bought on Friday (T day).
  • They get credited to the Demat account on Monday (T+1 working day).

Selling of Shares:

  • Shares are sold on Friday (T day).
  • Payout of the sale proceeds will be released by the Exchange on T+1 working day. Funds withdrawal requests can be placed from the trading account after Monday evening.

Note:
If there’s a settlement holiday, the settlement process will take an additional day.

Until January 27th, 2023, Indian Stock Exchanges followed a T+2 settlement cycle for equities and T+1 for F&O. However, starting from January 27th, 2023, all instruments in the Cash segment have moved to a T+1 Settlement Cycle.

What is a Settlement Cycle?

The settlement cycle refers to the time taken for a trade to be settled. For all instruments traded on Indian stock exchanges, the settlement cycle is T+1 working day, where "T" stands for the trading day.

Example (Cash Segment):

Buying of Shares:

  • Shares are bought on Friday (T day).
  • They get credited to the Demat account on Monday (T+1 working day).

Selling of Shares:

  • Shares are sold on Friday (T day).
  • Payout of the sale proceeds will be released by the Exchange on T+1 working day. Funds withdrawal requests can be placed from the trading account after Monday evening.

Note:
If there’s a settlement holiday, the settlement process will take an additional day. 

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