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:
Demat holdings |
Sell Date: 9th July 2021 |
On 9th July (same day, i.e. T day) | 80% of the total sell amount is available for trading only |
On 10th July (T+1 day) | 100% of the total sell amount is available for trading only |
On 11th July (T+2 day) | 100% of the total sell amount is available for trading and withdrawal |
T1 holdings |
Sell Date: 9th December 2020 |
On 9th Dec (same day i.e. T day) | No amount is available |
On 10th Dec ( T+1 day) | 100% of the total sell amount is available for trading only |
On 11th Dec ( T+2 day) | 100% of the total sell amount is available for trading and withdrawal |
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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