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India to move to T+1 settlement from Friday: Here's what it means

India To Start with T+1 stock settlement from February 25, which means that trade-related settlements must be done within one day of the transaction's completion.

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T+1 settlement system will shorten the settlement cycle which will reduce the risk of default and will increase the liquidity in the market with availability of funds

Ashley Coutinho
Currently, trades on the Indian stock exchanges are settled within two days, just like most major markets such as Singapore, Hong Kong, Australia, Japan, and South Korea. Indian exchanges, however, will be moving to T+1 settlement from February 25 in a phased manner. T stands for trade day. Here is the lowdown on what the shorter settlement cycle means:

What is the new T+1 settlement cycle?

T+1 means that trade-related settlements must be done within one day of the transaction's completion. Trades on Indian stock exchanges are currently settled in two working days after the transaction is completed (T+2). For

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First Published: Feb 24 2022 | 1:15 PM IST

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