What is the Settlement Cycle when I sell my Holdings?
Starting from 1st December 2020, a SEBI regulation regarding peak margins has changed the way sell amounts get credited to your account:
Selling a share from your Demat holdings:
80% of the sell amount is available for trading on the same day
The remaining 20% will be available for trading from T+1 day onwards
100% of the sell amount will be available for withdrawal from T+2 days onwards
Selling a share from your T1 holdings:
No Funds from the sell transaction will be available for trading on the same day
100% of the total sell amount will be available for trading only from T + 1 day onwards
100% of the total sell amount will be available for withdrawal from T + 2 days onwards
Here’s an example:
Please note: In case there is a bank or trading holiday between the date of selling to T+2 day, the settlement period will be extended accordingly.
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