From 25th February 2022 onwards exchanges have been migrating stocks to T+1 settlement in a phased manner starting with stocks with the lowest market cap. From 28th October 2022 onwards, the 9th batch of stocks will be moving to the T+1 settlement cycle in which there will be 520 stocks.
How does this impact me?
Due to change in settlement cycle, any of those stocks bought on Thursday, 27th October 2022, will not be available for selling on Friday 28th October 2022.
Stocks bought on Thursday will be settled by the exchange on Monday as per the old T+2 settlement cycle and will be available for selling on Monday.
Stocks bought on Friday will be settled as per their new settlement cycle, T+1 and will be available for selling on Monday.
We’ve added this Nudge on Kite explaining the same:
When you sell stocks, you can withdraw the money in 1 day and not 2 days like before. Not being able to withdraw funds for 2 days, is the most asked question to our customer support. So hopefully this will reduce some support effort for our team.
When you buy stocks, you get it to your Demat in 1 day, in case you want to pledge them for margins.
When you buy and then sell a stock within 2 days (before stock crediting your Demat), there is a short delivery & hence an auction penalty risk. Short delivery is when the person selling the shares fails to deliver the stock to you. If you have sold the stock and don’t have shares in your Demat, you will end up defaulting to deliver the stock as well. In which case you carry the risk of paying an auction penalty. This risk of 2 days reduces to just 1 day. To read more on short delivery and auction penalty, check this.