What is Trade Settlement? What is a Settlement Cycle?
The Settlement Cycle refers to the time taken for funds and securities for an executed trade to be settled into your trading account. In India, we follow a Rolling Settlement Cycle, which means that trades are settled as follows:
T+1- Trades are settled one trading day after the transaction date.
|Derivatives||T+1- Trades are settled one trading day after the transaction date. |
* T- Trade/Transaction date
For example, trades executed on Monday are typically settled 1 day later (i.e., on Tuesday) for the equity cash segment and derivatives segment trades.
Accordingly, the pay-in and pay-out of funds and securities are also carried out on the settlement day.