7. Clearing and settlement process

In video 5, we looked at what a trading platform is and how to buy and sell a stock. In this video, we pickup where we left off. When you buy a stock, there are various process that happen in the background and various actors are involved-this is called the Clearing and settlement process.
In this video, we understand the settlement cycle of buying & selling and why it is important for you to know.
Check out the Varsity chapter on the vide to understand more: zerodha.com/varsity/chapter/c...
Do you have any questions? Post a comment at the end of the chapter and we'll answer.

[@Akash-iu6ik]

For someone is watching after 27th Jan 2023, the new settlement day is T+1 from that day

[@varsitybyzerodha]

Noted, Akash. We'll look into this.

[@gaminghavoc7344]

​@@varsitybyzerodha Sir, I have a doubt. In this series at first you brought a share and selled immediately to show us. But why didn't it take t+2(whatever)days.

[@Bollywoodshorts24]

Today 28 March 2024 T+0,the new settlement day

[@tarangkipa24]

Varsity is the platform were you should get actually a good trading knowledge simple and effective.

[@T3speaks]

kindly update the videos too.... starting january 2023, trade get complete within t+1 day, that is within 2 days itself. And India is the first country to implement this

[@uccoskun]

Thank you saying after the "stock market is closed". it cleared my understanding.

[@dharvidixit8733]

Thankyou for making learning easy, I really liked the presentation, specially the flow of money part.😄

[@jaiGSK]

1.The day you make a transaction, the trade date, is represented as ‘T Day.’ 2.The broker is required to issue you a contract note for all the transactions carried out by the end of T day. 3.When you buy a share, the same will be reflected in your DEMAT account by the end of T+1 day. 4.All equity/stock settlements in India happen on a T+1 basis. 5.The shares are blocked immediately when you sell shares, and the sale proceeds are credited again on T+1 day.

[@Ricky-gb5md]

Thank you for making this video

[@meetvaja6133]

good presentation and nicely explaination

[@JuexT04]

Hlo Zerodha Hope You are reading my comment but Thank to You Zerodha I am 15 year and was confused about stock market from where I can study Its worth or not how much does it cost but when i known that Zerodha is doing it for free with legendary teaching i visited and now i am enjoying the life

[@varsitybyzerodha]

Hi, you can try and understand this playlist if you are interested: kzbin.info/www/bejne/fZS9iGVqiNCVfq8

[@somilgurnani9746]

Suggestion: We cant see the 'key takeaways'. because next video pop-up covers content

[@MohitKumar-gq8yx]

Pause the video and take screenshot

[@Mandeepkumar-ye7oh]

Download it in offline mode, then play it after data off.

[@giridharbm8206]

At the end of the video on 'key takeaways' page, there is a big V, and two more video recommendations. I cant read the key takeaways at all.

[@parikshitameta6626]

hello sir in every video when you are showing the key takeaways because of the ad of your next video we are unable to see it pls do something

[@parth8vgft]

Can someone explain me what really happening at T + 1 and T + 2 day, why is it necessary and why can't i instantly withdraw money after selling my share from my account??

[@aqsaqureshi4189]

If settlement process is T+2 then how day trader can trade within a day?

[@dhruvgupta8030]

Wow

[@pratheeekk]

Update!!! India has moved from T+2 to the T+1 settlement cycle now from 2023. Happy Investing 😊

[@Pandu-bn5yg]

how can we key takeaways points if ur representing another vedio and about subscription of ur channel.

[@varsitybyzerodha]

Hi Pandu, noted. The key takeaways are also available here: zerodha.com/varsity/chapter/clearing-and-settlement-process-2/

[@maanojrawat9410]

Any updates about T+1 settlement cycle??

[@varsitybyzerodha]

Hi Maanoj, we're looking into this. We'll try adding a new video for this.

[@32raghavhs91]

Sir mutual funds series videos is available in zerodha varsity please let me know please

[@varsitybyzerodha]

Hi Raghav, this is the link to the Varsity page: zerodha.com/varsity/chapter/introduction-to-mutual-funds/ If you want videos, here's the playlist: kzbin.info/www/bejne/bKTUY6JnltmKgrs

[@bhabani2343]

Can you please explain me what is net settlement for equity means 🤔

[@godissupreme1]

Why iccl debit 5000 per month automatically although it charges each time i sell certain equity shares.

[@varsitybyzerodha]

Hi, you must have set-up SIP for mutual funds, the debit would be towards this. Would suggest you create a ticket at support.zerodha.com with more details so out team can have this resolved at the earliest.

[@haryanvi7710]

ये वीडियो ज्यादा clear नही हुई। T मतलब जिस दिन आपने ऑर्डर लगाया CNC से। CNC मतलब long term के लिए। वो account ने show तो करेगा पर sell करने के लायक 2 दिन बाद होगा? और sell जब करे तब उस पैसे से कुछ खरीद सकते है, bank में नही मंगवा सकते, Holiday को भी, tb वो lock रहेगा??? ये lock वाला exchange system है या broker??

[@varsitybyzerodha]

Hi, could you please reach out to us on zerodha.com/contact? We'll explain this in detail.

[@twinklegupta3345]

If u don't want to give key take aways in proper way than don't give in every video u had already hide that notes so concept k liye video dekho than notes k liye dekho alg se no benefit 😬

[@achilesashes]

When will the T+1 settlement come into the existence? Referring to below article from SEBI www.sebi.gov.in/legal/circulars/sep-2021/introduction-of-t-1-rolling-settlement-on-an-optional-basis_52462.html