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What does settlement cycle i.e rolling settlement mean?

Rolling settlement is the process of settling security trades on successive dates so that trades executed today will have a settlement date one business day later than trades executed yesterday. This contrasts with account settlement, in which all trades are settled once in a set period of days, regardless of when the trade took place.

Check out these pages on BSE and NSE to learn more about rolling settlements.

The normal settlement cycle for a transaction on the exchange is T+2 days, i.e if you buy a share it will take 2 days for it to be credited to your Demat account. (Also implies that if you sell shares you will be able to withdraw that amount after T+2 days)

Ex- if you buy a share on Monday, it’ll be credited to your account on Wednesday evening. (If you sell shares on Monday it'll be withdrawable on Wednesday)

The settlement cycle for Derivatives (F&O, MCX) is T+1 day.

Check out this chapter on varsity on settlements for a detailed explanation.