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T+1 Settlement Explained (2026): When Your Shares and Money Arrive
India settles equity trades on T+1. Learn what that means for when shares reach your demat, when sale proceeds arrive, and how it affects your everyday trading.
What does T+1 mean?
T stands for the trade date, the day your order is executed. T+1 means the trade is settled one working day later.
Settlement is when the actual exchange happens: the buyer gets the shares and the seller gets the money. India's equity cash market moved to T+1 settlement in phases, and it is now the standard for regular trades.
What happens when you buy
Suppose you buy shares on a Monday. The trade is settled on Tuesday, and the shares are typically credited to your demat account that day.
Your holdings screen may show the shares as T1 holdings or pending until the credit is complete. They are still yours; they are just moving through the settlement system.
What happens when you sell
When you sell shares from your demat, the shares are debited and you receive the sale proceeds after settlement. With T+1, the money reaches your trading account one working day after the sale.
Withdrawing to your bank account may take a little longer, depending on your broker's payout process.
Pro tip: Planning to use sale money for a payment? Count working days, not calendar days, and leave a small buffer.
Put numbers on it: see what your trades cost at every broker. Try the compare-all brokerage calculator
Weekends and holidays
Only exchange working days count. If you buy on a Friday, settlement usually happens on Monday. If a trading holiday falls in between, settlement moves to the next working day.
Check the exchange holiday calendar when timing is important, such as before a record date for dividends or bonus shares.
How T+1 affects everyday trading
Faster settlement means your money and shares are tied up for less time. You can reinvest sale proceeds sooner and you face less counterparty risk.
- To be eligible for a corporate action, you generally need to buy at least one working day before the record date
- Selling shares bought the previous day (BTST) may be allowed but carries a risk of short delivery
- Sale proceeds become available for fresh trades quickly, often with some broker-specific limits
What about faster settlement options?
Exchanges have also introduced optional, faster settlement cycles for a limited set of stocks. Availability and rules change, so check whether your broker supports them and on which stocks.
For most retail investors, standard T+1 is what applies, and understanding it is enough for day-to-day investing.
Frequently asked questions
Does T+1 apply to intraday trades?
Intraday positions are squared off the same day, so no shares move to your demat. Only the net profit or loss is settled.
Can I sell shares before they arrive in my demat?
Many brokers allow selling T1 shares before they are credited, but if the seller fails to deliver, you could face a short delivery situation.
Does T+1 apply to F&O?
Futures and options are settled differently, with daily mark-to-market and expiry-based settlement as per exchange rules.
Why are my sale proceeds not withdrawable yet?
Sale money is credited after settlement, and brokers process payouts to your bank as per their own schedule, which may add a short delay.
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Educational content, not investment advice. Investments in securities markets are subject to market risks.