What does T+2 settlement mean?
Settlement timelines define when your securities and funds actually exchange hands after a trade. If you're new to trading, understanding what "T+2" or "T+1" means can help you manage expectations, avoid short deliveries, and plan your trades better.
What Is a T+2 or T+1 Settlement?
- T = Transaction Day
The day you place and execute your trade. - T+1 / T+2 = Settlement Day
The number of trading days after the transaction when settlement is completed—i.e., funds are debited or credited and securities are delivered.
Current Settlement Cycle at FYERS
As of 27th January 2023, the equity segment at FYERS and all Indian exchanges follows a T+1 settlement cycle.
That means:
- Buyers receive the securities in their Demat account by the end of the next trading day
- Sellers get the funds by the end of the next trading day
This is a shift from the earlier T+2 cycle, where settlement happened two trading days after the trade date.
Example:
- If you buy shares on Monday (T day), they will be delivered to your Demat account on Tuesday (T+1).
- If you sell shares on Monday, your funds will reflect by Tuesday.
Notes on Settlement Calculation
- Weekends and NSE/BSE holidays do not count in the T+1 or T+2 cycle.
- Settlement may be delayed if there’s a trading holiday on the following day.
- The same cycle applies across FYERS Web and Mobile platforms.
What If...
| Scenario | Outcome |
|---|
| I sell shares before they are settled in my account | This can lead to short delivery. Always wait until T+1 before selling new buys. |
| There’s a market holiday on T+1 | Settlement moves to the next trading day (e.g., T+2 if Tuesday is a holiday). |
| I buy on Friday | Shares will be delivered on Monday (assuming no intervening holiday). |
| I need official exchange confirmation | You can refer to NSE’s circular: Change in Settlement Cycle. |
Tip: Use FYERS’ “Holdings” tab to verify when shares are fully settled before initiating a sell trade.
Last updated: 24 Jun 2025
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