Explained here: Introduction of T+1 Rolling settlement on an optional basis - #20 by nithin
How does an investor benefit?
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.
