What is T+1 settlement system
Try to understand in simple words that this is because of the new T+1 settlement cycle, all shares related to buy or sell in India will be settled on the next day or so in just 24 hours.
You must have understood that due to this the transaction in shares will be faster than before.Till the beginning, T+ 2 settlement cycles have been used, if any investor has bought or sold any share today, then his account limit will be updated in the next 24 hours.
And now with the introduction of this new T + 1 settlement system, the transaction of shares or related money will be updated in the demat account within a maximum of one day.
How the T+1 settlement cycle started
Although this system T + 1 was started in the country in a phased manner only in the year 2022, but now taking its scope even further, the new system has been implemented today i.e. on January 27, 2023 for almost all the shares. Has gone
In fact, in February 2022, the T+1 settlement cycle was started for the 100 stocks with the lowest market capitalization, and gradually the work was done to broaden it!
From today, deals related to ‘large cap’ and ‘blue chip’ stocks in the Indian stock market will be settled on the basis of T+1 settlement system only.
The interesting thing is that many international stock exchanges have already adopted the system in all the countries of the world, but still in the international stock exchanges of some big countries like America, Europe, China, Japan T+1 settlement is being used
Let us tell that only T + 2 cycle was running in India from the year 2003 and before that T + 3 and even before that T + 5 settlement cycle was being used.