What is T+2 settlement?

What is T+2 settlement?

T refers to the day on which the transaction took place. This means that the buyer must pay the amount in full to the seller by the second trading day after the transaction and the seller must provide the shares to the buyer by the second trading day after the transaction.

For all trades executed on trading day i.e. T day the obligations are determined on the T+1 day and settled T+2 basis i.e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. 
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