Get ready for lightning-fast stock trading! Blue-chip stocks moving to T+1 settlements starting Jan 27
As of now, the settlement process in India is based on rolling settlement principle of T+2 . The settlement cycle will be reduced further to T+1 to enhance market liquidity.
On January 27, the Indian equity market will shift to a shorter trading cycle called, T+1 settlement. This will allow buyers and sellers to get shares and money in their accounts one day after the trade ends.
T+1 settlement will give investors the option to trade more by rolling the funds and shares faster.
Those transacting in blue-chip stocks will get their money or shares delivered in less than 24 hours from Jan 27.
After the new rule, if an investor buys 50 shares on Monday, for instance, then these will be received in their Demat account on Tuesday.