What is the settlement cycle for trades in the Indian securities market?

The settlement cycle is the process through which securities are transferred to the buyer and funds are transferred to the seller after a trade is executed.

In the Indian securities market, the standard settlement cycle for equity trades is T+1 working day, where T refers to the trade date. The settlement timeline varies depending on the type of transaction.

Equity: Shares purchased on Monday are generally credited to the demat account on Tuesday. Funds payable for shares sold are also settled as per the applicable settlement process.

Futures & Options (F&O): Settlement timelines differ by transaction type. Option premiums and applicable mark-to-market (MTM) obligations are subject to their respective settlement schedules, with certain credits and debits settled on different timelines.

Note: Actual settlement timelines may vary based on exchange holidays, the instrument traded, and applicable exchange settlement rules.

Understand the Settlement Cycle

Learn how funds and securities are settled after a trade is executed.

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