What does the settlement cycle mean?
The settlement cycle refers to the time it takes to complete a
trade—from execution to the transfer of securities and funds. In Indian
securities markets, the standard settlement cycle is T+1, where T is the
trading day and settlement occurs on the next working day.
If a settlement holiday falls within this cycle, the settlement is extended by
one additional business day.
Equity Segment:
Buying Shares:
If you purchase shares on Monday (T day), they will be credited to your demat
account by Tuesday (T+1 day).
Selling Shares:
If you sell shares on Monday (T day):
The sale proceeds are reflected in your trading account on the same day.
However, you can withdraw the funds only after Tuesday (T+1) evening.
Futures & Options (F&O) Segment:
Credit Obligations:
When you take a long/short futures or short options position on Monday (T day),
any credit—such as Mark to Market (MTM) gains or option premiums—is settled to
your trading account by Tuesday (T+1 day).
Withdrawals of these funds are allowed after Tuesday evening.
Debit Obligations:
Any debit from your trading account (such as losses or premium payments) is
settled on the same day (T day).
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