The settlement cycle is the period in which the trade is settled. The Stock exchanges in India follow the T+2 rolling settlement cycle. ‘T’ is referred to as a ‘Trading Day’ and stocks bought by you today are deposited in your Demat account in T+2 days. So the stocks bought by you on:
‘Monday’ are deposited in your Demat account on ‘Wednesday’
‘Wednesday’ are deposited in your Demat account on ‘Friday’
‘Friday’ are deposited in your Demat account on ‘Tuesday’
As you can see the stocks bought on ‘Monday’ and ‘Wednesday’ are settled normally in T+2 days but the stocks bought on ‘Friday’ are settled in T+3 days as there is a trading holiday on Saturday and Sunday. Note: ‘T+1’, ‘T+2’ are normal trading days.
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