InvestorQ : What happens on the third day of the trade (T+2) date?
Abhi Yadav made post

What happens on the third day of the trade (T+2) date?

Answer
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ishika Banerjee answered.
2 years ago


This is an important date from the point of view of stock market investing. On T+2 or the T+2 day, around 11 AM shares are debited from the person who sold you the shares and credited to the brokerage with whom you are trading, who will in turn credit it to your DEMAT account by end of the day. Similarly, money which was debited from you is credited to the person who sold the shares. Normally, your broker will insist on funding the cash on the same day and debit instruction slip (DIS) for DP by the next day first half.
The shares will now start reflecting in the DEMAT account indicating that you own the shares. From that point, you are free to either sell or pledge or transfer these shares as per your choice. For all practical purposes, if you buy a share on day T Day, you can expect to receive the shares in your DEMAT account only by end of T+2 day. The shares are available for the transaction on T+3 day. The cash inflow in case of the sale comes into your bank account either by end of T+2 day or early on T+3 day.