Update: Securities Settlement migrating from T+2 to T+1

Hello Traders,

As you would already know, India is transitioning from T+2 settlement times to T+1.

On this same track, the next batch of 507 securities will be migrating from T+2 settlement to T+1 settlement effective this Friday, 30 December 2022. Due to this change in the settlement cycle, all stocks bought on Thursday (29 December 2022) will not be available for selling on Friday, 30 December 2022.

This is done to ensure that these 507 shares in transition are settled on the day as result of the change in settlement cycle. You can view the securities list for the same here.

To make it simpler for you to understand, let’s consider this below example:
Say you bought 100 shares of ABC (one of the securities that is being transitioned) on Thursday, 29 December 2022, settlement of the same being T+2 the shares will be credited to your demat account on Monday, 2 January 2023. If you sell these shares on the next day i.e. Friday, 30 December 2022 (BTST), due to settlement being migrated to T+1 settlement the shares will be required to be delivered on Monday, 2 January 2023.

Now at the exchange, securities PAY-IN for the shares sold on Friday, 30 December 2022 under T+1 settlement happens at 10:30 AM while securities PAY-OUT for shares bought on Thursday, 29 December 2022 happens around 01:00 PM. Thus the time difference between pay-out and pay-in will cause a shortage in delivery leading to auction. Therefore, to safeguard our clients, we will not show the shares bought on Thursday, 29 December 2022 in your holdings on Friday, 30 December 2022 thereby prohibiting them from selling.

Please note that this is applicable to ONLY for those 507 securities which are scheduled for T+1 settlement migration effective from Friday, 30 December 2022.

Shrimohan Jhawar