ALL trades to be settled in 1 day from 1st Oct | T+1 settlement for ALL stocks from 1st October

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When we buy shares on the stock exchange, it usually takes 2 days for the shares to be credited or debited in our demat account after the transaction. This is known as T+2, or trade + 2, settlement. SEBI introduced T+1 settlement in a phased manner for blue chip stocks in January 2023. However, starting from 1st October, Indian markets will follow a T+1 settlement cycle across all stocks, which means trades will be settled within 24 hours. In fact, India is the second country after China to implement T+1 settlement.

Did you know that until 30 years ago, it used to take 2 weeks for this settlement process? However, since July 2001, with the advent of online trading, stock exchanges moved to a T+5 settlement cycle. And now, they are moving towards 1-day settlement.

Furthermore, SEBI plans to introduce T+0 settlement from March 2024, wherein trades will be settled within one hour. This means traders' funds won't be blocked, and they can easily trade with the same funds within an hour!

If this becomes possible, it could be a game-changer for India. What do you think about it? Let us know in the comments section!