T+1 Settlement on WebNotes

How to fix a missing holding after delivery on Zerodha

Tue, 12 May 2026 00:00:00 +0000

A buy order executed with the CNC (Cash and Carry) product code on Kite results in shares being credited to your demat account after settlement. Under India’s T+1 settlement cycle (effective January 2023 for most NSE and BSE equities), the shares are credited on the next trading day after the trade. If you do not see the shares in Kite’s Holdings section, the most common cause is that T+1 settlement has not yet completed.

Settlement cycles for mutual fund transactions (T+1/T+2/T+3)

Tue, 12 May 2026 00:00:00 +0000

Settlement cycles for mutual fund transactions refer to the number of business days within which redemption proceeds or allotment confirmations must be delivered to investors following a transaction. In India, SEBI prescribes separate settlement timelines for different types of mutual fund schemes, with faster settlement for liquid and overnight funds (which invest in very short-duration, highly liquid instruments) and longer timelines for equity and debt funds.

Settlement in mutual funds is primarily relevant to redemptions (the payment of redemption proceeds to the investor’s bank account) and unit allotments (confirmation that purchased units have been credited). Unlike equity market settlement, where a central counterparty (NSE Clearing or ICCL) nets and settles trades, mutual fund settlement occurs directly between the AMC/RTA and the investor’s bank.

BTST (Buy Today Sell Tomorrow) on Zerodha

Mon, 11 May 2026 00:00:00 +0000

BTST (Buy Today Sell Tomorrow) is a trading strategy in which an investor buys equity shares on one day and sells them on the next trading day, before the purchased shares are credited to their demat account through the normal settlement cycle. On Zerodha, BTST trades are executed using the CNC product code for both the buy and the subsequent sell order.

Under India’s T+1 settlement framework, shares bought on Day 0 (T) are credited to the buyer’s demat account on Day 1 (T+1). BTST involves selling these shares on Day 1 before the credit arrives, technically selling shares that are in the pipeline of settlement rather than in the demat account. This creates a specific settlement risk called short delivery.

Demat account

Mon, 11 May 2026 00:00:00 +0000

A demat account (short for dematerialised account) is an electronic repository that holds an investor’s securities – shares, bonds, mutual fund units, government securities, exchange-traded funds, and sovereign gold bonds – in digital form rather than as physical certificates. In India, demat accounts are maintained by two central depositories, CDSL and NSDL, through a network of registered intermediaries called depository participants (DPs). Introduced following the Depositories Act 1996, the demat system eliminated the risks associated with physical share certificates – theft, forgery, loss in transit, and cumbersome transfer procedures – and became the foundation of modern Indian capital markets.

Equity segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The equity segment on Zerodha is the platform’s largest business line by client headcount and turnover. It covers the buying and selling of equity shares listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the cash market (CM) segment. All trades in this segment are governed by the Securities and Exchange Board of India (SEBI) and cleared through NSE Clearing Limited (NCL) and Indian Clearing Corporation Limited (ICCL) for BSE. Settlement since January 2023 occurs on a T+1 basis for most listed equities, meaning shares and funds move between counterparties on the trading day plus one calendar day.

Zerodha and T+1 settlement

Mon, 11 May 2026 00:00:00 +0000

Overview

T+1 settlement refers to a securities settlement cycle in which a transaction executed on a trading day (T) is settled – with securities delivered to the buyer and funds paid to the seller – by the end of the following trading day (T+1). India completed the transition from T+2 to T+1 settlement for equity shares on the NSE and BSE in January 2023, making it one of the first major markets globally to implement T+1 as the standard settlement cycle for all listed equities.