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Investing

T+1 Settlement: When Shares and Money Reach Your Account

Under T+1, shares you buy reach your demat and sale money reaches your broker one trading day after the trade. Same-day T+0 is optional for 500 stocks.

VD

Written by Vikram Desai

Published 5 November 2026·5 min read

On this page9 sections
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Under T+1 settlement, a trade you place today (T) settles on the next trading day. Shares you buy reach your demat account on T+1, and the sale money reaches your broker the same day. India has settled all equity-segment trades this way since 27 January 2023.

Key facts

Item Detail
Standard cycle T+1 rolling settlement for all securities in the equity segment
Fully in force since 27 January 2023 (phased in from 25 February 2022)
Securities pay-in by brokers By 10:30 am on T+1
Shares to buyers Credited directly to the client’s demat account by 3:30 pm on T+1
Funds pay-out to brokers On or after 1:30 pm on T+1
Broker to you Within 1 working day of pay-out, unless you chose a running account
Optional T+0 Available for the top 500 stocks by market value; trades up to 1:30 pm settle the same day

What T+1 means

“T” is the trade date. “+1” is one settlement day later. NSE Clearing says it leaves out Saturdays, Sundays, NSE holidays and bank holidays when it counts that day. A trade on Friday therefore settles on Monday, if Monday is a working day.

T+1 covers every security in the equity segment. NSE’s January 2023 release lists shares (including SME shares), ETFs, REITs, InvITs, sovereign gold bonds, government bonds and corporate bonds. India used T+2 before this. SEBI allowed exchanges to move to T+1 from 1 January 2022, and the first batch of stocks moved on 25 February 2022.

Clearing and settlement is the back office of a trade. Our stock market basics page explains how exchanges, brokers and depositories fit together.

Buy side: when your shares arrive

Suppose you buy 10 shares on Monday.

#ItemDetails
1Monday (T)the order executes and your broker blocks the money. NSE Clearing works out every broker’s obligations, provisionally by 9 pm.
2Tuesday (T+1) morningfinal obligations are out by 9 am. Sellers’ brokers deliver shares by 10:30 am.
3Tuesday afternoonNSE Clearing sends the shares to your demat account by 3:30 pm.

Since SEBI’s circular of 5 June 2024, the clearing corporation credits shares straight to the client’s demat account. They no longer sit in the broker’s pool account first. If you have not fully paid, the broker can have them credited with a pledge in its favour until you pay.

What if the seller fails to deliver? For normal-segment trades, NSE Clearing runs an auction on T+1 and settles it on T+2, so your shares come a day late.

Sell side: when the money is credited

When you sell, the shares must reach the clearing corporation by the T+1 pay-in deadline. Many brokers block them in your demat account through early pay-in when the order executes.

#ItemDetails
1T+1, after 1:30 pmNSE Clearing pays the sale money into your broker’s clearing account.
2Within 1 working daySEBI’s FAQ says the broker must pay you, unless you opted for a running account.
3Running accountthe broker keeps the balance for your next trades. It settles the account on the first Friday of each month or quarter, as you chose.

Brokers usually show sale proceeds in your trading balance on the trade day for new buys. The withdrawable balance and payout timing differ between brokers, so check your broker’s funds page before you plan a transfer to your bank.

The optional T+0 cycle

SEBI started a beta T+0 (same-day) cycle on 28 March 2024 for 25 stocks. Its circular of 10 December 2024 widened it to the top 500 stocks by market value from 31 January 2025. Stocks were added 100 at a time each month, starting with the bottom 100.

Feature T+1 T+0
Stocks All equity-segment securities Exchange list of eligible stocks (top 500)
Trading window Full market hours 9:15 am to 1:30 pm
Price Normal market price Within a band of 100 basis points of the T+1 price
Settlement Next trading day Same day: pay-in 3:30 pm, pay-out 4:30 pm (CDSL)
Selling Normal pay-in Shares must be early pay-in blocked by 1:45 pm
Availability All brokers All brokers may offer it; qualified stock brokers must

T+0 is optional, and T+1 continues alongside it. T+0 prices do not feed index values, and T+0 and T+1 obligations are not netted against each other. Brokers may charge different brokerage for the two cycles.

Settlement holidays

A settlement holiday is a day when the market trades but money and shares do not move, usually because banks are shut. Trades done the day before settle on the next working day, so your shares or money arrive a day later. NSE Clearing publishes these dates in advance. Our stock market holidays 2026 list shows this year’s settlement-only days, and our stock market timings guide covers session hours.

What T+1 means for you

ItemDetails
Selling shares bought yesterdaymany brokers allow it before delivery (called BTST). If the seller who sold to you fails to deliver, your own delivery can fall short too.
Corporate actionsto be on the register on a record date, buy at least one trading day before it. See our explainer on record date and ex-date.
Delaysif shares or money have not arrived by the end of T+1, raise it with your broker first and keep the contract note.

Frequently asked questions

What is T+1 settlement in simple words?

Your trade is completed one trading day after you place it. The buyer gets the shares and the seller’s broker gets the money on T+1.

When will shares bought today show in my demat account?

On the next trading day. NSE Clearing releases the shares directly to your demat account by 3:30 pm on T+1.

When will I get money after selling shares?

Your broker receives it on T+1 after 1:30 pm. SEBI requires the broker to pay you within one working day of that, unless you chose a running account.

Is T+0 settlement compulsory?

No. T+0 is optional and covers only the listed eligible stocks. All other trades, and any trade you do not place in T+0, settle on T+1.

Do Saturdays and holidays count in T+1?

No. Weekends, exchange holidays and bank holidays are excluded, so a Friday trade usually settles on Monday.

Can every broker offer T+0 trades?

SEBI allows all brokers to take part, and qualified stock brokers must provide it. Brokers may charge different brokerage for T+0 and T+1 trades.

Sources

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