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. 

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article

Related articles

Still need help?