What are unsettled funds?
Any amount received from the sale of securities is considered 'unsettled' till the completion of the settlement period. This implies that you will not be able to withdraw the sales proceeds until the trades are settled and the funds are credited in your trading account. However, you can use these sales proceeds as margins to take fresh positions.
In India we follow a rolling settlement cycle, which means that delivery trades are settled as follows:
- Equity- 1 trading day after the transaction date (T+1), as applicable. Learn more about T+1 settlement.
- Derivatives- 1 trading day after the transaction date (T+1).
If the settlement day is a holiday, the next working day will be settlement day.
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