India becomes the first major market to move to a T+1 settlement cycle

25 Jan 2023

Starting tomorrow, India will become the first major market to completely move to a T+1 settlement cycle (China is partly T+1). It is crazy how far ahead we are in terms of market infrastructure and safety, even when compared to the developed world.

So if you buy a stock, you get it in your demat the next day, and if you sell, you will have the funds by the next day. This used to take T+2 days. The transition to T+1 has been happening in batches based on market cap (small to big) since Feb 2022.

You might be wondering, why isn’t instant settlement like payments possible.

This is because most trading volumes on the exchange are from intraday traders who buy and sell stocks without taking delivery or have the stocks to deliver immediately.

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