⚠ BETA — all market data shown (deals, filings, prices, indices) is demo / illustrative, not live trading data. For evaluation only; verify before acting.
June 14, 2026
The Dispatch

Definition

T+1 Settlement

T+1 settlement means a stock trade is settled one working day after the transaction date, so shares and money change hands by the next business day.

When you buy a share on day 'T', the shares are credited to your demat account and the money debited by the next working day (T+1). India moved fully to T+1 settlement on the NSE and BSE in January 2023, becoming one of the first major markets to do so, ahead of the US which shifted in 2024.

Faster settlement reduces counterparty risk and frees up capital sooner. SEBI is also rolling out an optional T+0 (same-day) settlement cycle for a set of stocks, with the long-term aim of instant settlement.

Related terms

  • Clearing CorporationA clearing corporation is the entity that clears and settles trades on an exchange, becoming the buyer to every seller and the seller to every buyer through novation, and guaranteeing settlement.
  • Contract NoteA contract note is the legal document your broker issues confirming the details of trades executed on your behalf each day.
  • Rolling SettlementRolling settlement is a system in which trades settle a fixed number of days after the trade date on a continuous daily basis, replacing the older fixed account-period settlement.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.