Trade settlement is the process of transferring securities and funds between buyers and sellers after a trade is executed. The shorter the settlement cycle, the faster investors can access the securities and funds. Currently, the Indian stock market operates on a T+1 settlement cycle for all scrips.
After implementation of T+1 settlement cycle in Indian stock market, T+2 settlement cycle can be awarded to equity mutual fund investors, believe experts
‘This is because most trading volumes on the exchange are from intraday traders who buy and sell stocks without taking delivery or have the stocks to deliver immediately,’ the Zerodha boss said