The settlement cycle is the time required for a trade to be settled. On Indian exchanges, the settlement cycle for all traded instruments is T+1 day, with T representing the trading day.

Example scenario (Equity segment)

Buying shares:

1. On Monday (T day), shares are purchased.
2. The shares are credited to the demat account on the following day, Tuesday (T+1 day).
   

Selling shares:

1. On Monday (T day), shares are sold.
2. On Tuesday (T+1 day), the funds are credited to the trading account. These funds can be withdrawn from the trading account only after Tuesday evening.
   

Example scenario (F&O segment)

1. On Monday (T day), a long/short futures or short position is initiated.
2. On Tuesday (T+1 day), any credit obligation of funds in the form of Mark to Market (MTM) or premium is settled to the trading account. These funds can be withdrawn from the trading account only after Tuesday evening. Any debit obligation of funds is settled on the same day, i.e. T day from the trading account.
   

If there's a settlement holiday, the settlement process will take an additional day. To learn more, see What is a settlement holiday and its impact?