When your money and shares actually arrive
Placing an order takes a second. The shares and the money take longer, and knowing exactly how long avoids a surprising number of small panics.
Last checked August 2026. Sources listed at the end.
The short version
- Indian equity settles on T+1, meaning the next working day after the trade.
- Optional T+0 same day settlement exists for a growing list of large stocks, subject to your broker supporting it.
- Mutual funds are not settled like shares. You get the day based on when your money reaches the fund.
- Selling shares gives you usable funds the next working day, though brokers may credit against it sooner.
- Different products have different timelines. IPOs, funds and shares all work differently.
What settlement means
When you buy a share, two separate things happen. The trade is when your order is matched with a seller on the exchange, which is instant. The settlement is when the shares actually move into your and your money moves to the seller.
A clearing corporation sits in the middle and guarantees both sides, which is why neither party can simply fail to deliver. That guarantee is why the process takes any time at all.
T+1, the standard
India moved all equity cash trades to T+1 settlement in 2023, and was among the first major markets in the world to do it. T is the trade day, so T+1 is the next working day.
| You trade on | It settles on |
|---|---|
| Monday | Tuesday |
| Friday | Monday |
| The day before a holiday | The next working day |
So shares you buy on Monday appear in your demat account on Tuesday, and money from a sale on Monday is settled to you on Tuesday. In practice most brokers make sale proceeds usable for further trading immediately, and allow withdrawal to your bank once settled.
This matters more than it sounds for anyone selling to meet a specific need. Selling shares on the day a payment is due is cutting it fine. Selling on Friday for a Monday payment leaves no margin at all.
T+0, optional same day settlement
SEBI introduced an optional same day settlement cycle, starting as a beta in March 2024 with a small set of stocks and expanding in phases toward the top 500 companies by market capitalisation.
Under it, orders placed within a defined window, typically before about 1:30 in the afternoon, are settled the same day, with funds and securities usually completed by around 4:30.
T+1 remains the default and applies to everything. T+0 is a parallel option, not a replacement.
Mutual funds work differently
A is not traded on an exchange, so settlement does not apply in the same way. What matters instead is which day NAV you get, and that depends on when your money actually reaches the fund.
This is why a purchase placed at 11 in the morning does not tell you the price you paid until that evening. The is calculated once, after the market closes.
| Action | Typical timeline |
|---|---|
| Buying a fund | Units allotted at the applicable day NAV once funds are received |
| Redeeming an equity fund | Money usually credited within a few working days |
| Redeeming a | Usually faster, often the next working day |
| instalment | Debited on your chosen date, units at the applicable NAV |
Timelines vary by fund house and by scheme, and instant redemption facilities exist for some liquid funds up to a limit. Check the scheme document rather than assuming.
Other timelines worth knowing
- application. Money is blocked in your bank account rather than debited, and is released if you do not receive an allotment. Listing follows the allotment within a short defined period.
- . Paid to whoever holds the shares on the record date. Buying after the ex-dividend date does not entitle you to that payment.
- Bonus and split shares. Credited to your demat account after the record date, and the process can take several days.
- Account opening. A demat and trading account is usually active within a day or two of completing verification.
- Moving money out. Bank credits follow banking hours, so a settlement completing on a Saturday reaches your account on the next working day.
What to remember
- Indian equity settles on T+1, the next working day after the trade.
- Optional T+0 same day settlement exists for eligible large stocks, if your broker supports it.
- T+1 remains the default for everything. T+0 is a parallel option, not a replacement.
- Mutual funds are not settled like shares. You receive the applicable day NAV, calculated after market close.
- If you need money on a specific date, sell several working days early and add a buffer.