What does T+1 Settlement cycle mean?
Until 27th January 2023 , Indian Stock Exchanges followed a T+2 settlement cycle for equity and T+1 for F&O. However, all instruments in Cash segment are moved to T+1 Settlement Cycle from 27th January 2023.
The time taken for a trade to be settled is referred to as settlement cycle. The settlement cycle for all the instruments traded on the Indian stock exchanges 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 sale proceed will be released by Exchange on T+1 working day. Hence, funds withdrawal request can be placed from the trading account after Monday evening.
It will take an additional day for the settlement process if there’s a settlement holiday. Check here for Settlement holidays calendar.
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