The settlement cycle is the time required for your 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: Equity segment
When you buy shares:
- On Monday (T day), you purchase shares.
- Your shares are credited to your demat account on Tuesday (T+1 day).
When you sell shares:
- On Monday (T day), you sell shares.
- On Tuesday (T+1 day), funds are credited to your trading account. You can withdraw these funds from your trading account only after Tuesday evening.
Example: F&O segment
- On Monday (T day), you initiate a long/short futures or short position.
- On Tuesday (T+1 day), any credit obligation of funds in the form of Mark to Market (MTM) or premium is settled to your trading account. You can withdraw these funds from your trading account only after Tuesday evening. Any debit obligation of funds is settled on the same day (T day) from your trading account.
If there's a settlement holiday, your settlement process will take an additional day.