24 Jan 2023, 05:00 PM

Change in settlement cycle for all securities from 27th January 2023

From 25th February 2022 onwards exchanges have been migrating stocks to T+1 settlement in a phased manner starting with stocks with the lowest market cap. From 27th January 2023 onwards, the final batch of securities including stocks, ETFs, debt instruments, REITs, and InvITs will be moving to the T+1 settlement cycle.

Due to a change in the settlement cycle, any of these stocks bought on Wednesday, 25th January 2023, will not be available for selling on Friday, 27th January 2023 due to the risk of short delivery and subsequent auction penalty which can be up to 20%. They will be settled by the exchange on Monday as per the old T+2 settlement cycle and will be available for selling on Monday.

Stocks bought on Friday will be settled as per their new settlement cycle, T+1, and will be available for selling on Monday.

The credit received from selling these T+1 settled stocks will be available for withdrawal from the next day itself, that is on T+1.

You can learn more about the T+1 settlement cycle here and also check the circulars here (NSE & BSE).

If you have any queries then do post them on our Trading Q&A forum here.