Relief news for share market investors, the new system will be implemented from January 27

New Delhi, January 20, Friday

A new settlement system is going to be implemented in the Indian stock market from January 27. After implementation of this system, the settlement period will be reduced. Earlier such changes were made in 2003. Then T+2 system was implemented. Now after two decades, a new settlement system is being prepared to be implemented.

The Indian equity market will now completely shift to a short transfer cycle

The Indian equity market will now completely shift to a short transfer cycle called T+1 settlement. After implementation of this rule, the seller and buyer's account will be allowed to receive money within 24 hours after the trade closes. In simple words, if you sell the shares included in your portfolio, the money will be credited to your account within 24 hours.

All large-cap and blue-chip companies will switch to the T+1 system on January 27

All large-cap and blue-chip companies will switch to the T+1 system on January 27. Currently T+2 system is applicable in the market. Due to this, it takes 48 hours for the money to reach the account. T+2 rule is applicable in stock market since 2003. This will change from 27 January 2023. The T+1 settlement system will give investors the option to do more trading by rolling funds and stocks faster.

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