What is the change in the settlement cycle? And how will it benefit the investors?
Hey @amith_nelson,
The new settlement cycle is T+1 day, which will take effect from 27th January 2023 onwards. The credits from selling the stocks will be available for withdrawal from the next trading day itself. You can refer to this notice for more details.
Change in the settlement cycle is the move from a T+2 to a T+1 settlement cycle, resulting in one day earlier settlement of trades.
The settlement cycle is the number of days between the trade date and the date when the transaction is settled, i.e. when payment is made and the ownership of the securities is transferred.
This change in the settlement cycle can benefit traders/investors in multiple ways:
- As a result of the shorter settlement cycle, investors will have access to their funds one day sooner, making it easier to manage cash and plan investments.
- By reducing the time between trade execution and settlement, investors will be able to invest in additional opportunities with their capital.
Investors benefit from the new settlement cycle because it enhances capital usage, efficiency, and flexibility.