Quick settlement

T+1 will increase liquidity

On Friday, the Indian stock market completed the shift to a “T+1” settlement system, where every transaction will be completed within one working day post-trade. That is, if a stock is traded on Monday, the cash will be credited into the seller’s account by Tuesday and the stock will also be transferred to the buyer’s account by then. This move from the earlier T+2 settlement system was initiated in a phased manner from February 2022 onwards with batches of stocks and the associated derivatives being transferred to T+1. Stocks were collected into batches on the basis of market capitalisation and the movement to T+1 started with the lowest market capitalisation group. The last remaining set consisting of large caps and blue chips was transferred on Friday.

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