What is T+1 settlement?

T+1 settlement means a trade settles one business day after the trade date, so if you buy shares on Monday, the shares are credited to your demat account and the payment is debited from your funds by Tuesday (assuming no holidays in between). India moved to T+1 settlement for the equity cash market in phases, completing the full transition by early 2023, a shift from the earlier T+2 cycle. This affects a few practical things: shares bought today typically aren’t available to sell for delivery until they’re credited the next day (though intraday buying and selling the same shares on the same day is a separate mechanic that doesn’t require settlement first), and proceeds from a sale aren’t withdrawable to your bank until settlement completes the next business day. You keep the settlement date in mind, especially around weekends and market holidays, since a Friday trade settles on the next business day, not necessarily Saturday.