Glossary
/Settlement
What is Settlement?
Buying a stock is just clicking a button, but the actual exchange of money and shares happens later. That backend process is the settlement. In India, the stock market recently shifted to a T+1 cycle. This means if you buy shares on Monday, the money leaves your bank, and the shares hit your demat account by Tuesday. Before this upgrade, it used to take two whole working days. It completely removes the fear that the other party might back out after the trade is executed.
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