If you are an active trader or investor in Indian stock market then this news concerns you. T + 1 settlement is going to be implemented in the Indian stock market from January 27, which will affect every small and big investor in the country. Due to this, the transaction in the stock market will be much faster than before and the money will be credited quickly on selling shares to an investor.
At present, T+2 settlement is applicable in the stock market, due to which the shares are credited within 48 hours after the investor buys them in the market. Whereas, the same happens at the time of share sale. The amount is credited within 48 hours of the investor selling the shares.
What will change from T+1 settlement
After the implementation of T + 1 system, the trading cycle in the stock market will be shorter than before. In case of purchase on behalf of the investor, the shares will be credited to their account within 24 hours. Whereas, if someone sells the shares, the money will come into their account in 24 hours. This will be applicable to all large cap and blue cap stocks.
What will be the effect of T+1
Market experts say that after the implementation of T + 1 system, people will get money faster than before. This can also increase the liquidity in the market and the margin requirement will also come down.