Investing T1 Settlement Holdings

T1 above shares on Holdings on Kite

From WebNotes, a public knowledge base. Last updated 20 May 2026. Reading time ~4 min.

The T1 above shares indicator on the Kite Holdings tab is a flag showing the quantity of shares you bought today (or in BTST scenarios, in an in-progress settlement cycle) that have not yet settled into your demat account. The flag appears above the main Qty number in the row.

What T1 means

Since SEBI’s T+1 settlement framework took full effect in January 2023, equity trades in India settle one trading day after execution:

Day T: You buy shares CNC.
End of Day T: Trade book records the buy.
Day T+1: Shares are credited to your demat; cash is debited.

Between the buy execution and the T+1 settlement, the shares exist in a transitional “T1” state. They are flagged on Kite Holdings to distinguish them from the settled main quantity.

Where it appears on Kite

Surface	Display
Kite web Holdings row	“T1: X” label above the main Qty
Kite app Holdings row	Similar “T1: X” overlay
Console Holdings	Pending vs Settled columns

The user sees both numbers: “Qty: 200, T1: 50” means 200 total holding, of which 50 are T1 (bought today, not yet settled).

Sale eligibility of T1 quantities

T1 shares can be sold on the same day (day T) via the BTST (Buy Today, Sell Today) pathway. The BTST sell is itself subject to T+1 settlement: the sell proceeds are not available until T+1 evening (or T+2 morning for fresh buys).

For a BTST sell:

Day T morning: buy 100 RELIANCE @ Rs 2,900.
Day T afternoon: sell 100 RELIANCE @ Rs 2,950.
Day T evening: no shares credit / debit yet; trade book shows both.
Day T+1: buy settles (would have credited 100 RELIANCE); sell settles (would have debited 100 RELIANCE). Net effect on demat: zero shares.
Day T+1 evening: cash proceeds (Rs 5,000 profit, less STT and charges) credit to the trading account.

This works only when the buy and sell are at the same broker and on the same scrip in the same direction (buy then sell).

Selling T1 shares on a different exchange

If you bought NSE T1, can you sell on BSE day-T?

Theoretically yes (the demat is exchange-agnostic).
Practically, brokers may restrict BTST on a different exchange to avoid short-delivery scenarios.

Verify with Zerodha support before placing such a trade.

STT on BTST sells

Securities Transaction Tax on a BTST sell is the same as on a regular delivery sell: 0.025% on the sell value. The buyer is also liable for the regular settlement.

Short delivery risk

For a BTST sell, there is a small risk of short delivery: if the buy fails to settle on T+1 (rare but possible due to exchange auction or settlement glitch), the sell may also fail, triggering an auction and penalty. Brokers usually warn before allowing BTST on illiquid scrips.

Pledging T1 shares

T1 shares cannot typically be pledged for margin until they settle. The pledge instruction requires settled, free demat balance.

Corporate actions and T1

If a corporate action’s record date falls on T (your buy date), the entitlement (dividend, bonus, etc.) may or may not be credited:

Buy on or before ex-date: Entitled (settled by record date).
Buy on ex-date or after: Not entitled (the share now trades ex-bonus / ex-dividend).
T1 on ex-date itself: The share carries the entitlement because the underlying buy was before the record date.

Cross-check the event tag on the marketwatch for the specific ex-date.

Cancellation if you change your mind

A T1 buy cannot be cancelled after execution. The trade is committed; settlement is automatic. To unwind:

Sell the T1 quantity (BTST).
Accept the realised P&L from the buy-then-sell.

T1 vs T2

There is no T2 flag on Kite Holdings. Once T+1 settlement completes, the T1 flag is removed and the shares are part of the main settled Qty.

External references

References

SEBI, T+1 settlement implementation, circulars dated 7 September 2021 and 1 July 2022.
NSE Clearing, Settlement schedule for equity, nseclearing.com.
Zerodha Support, T1 holdings and BTST, support.zerodha.com.
Securities Transaction Tax Act, 2004.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 20 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.