T Plus Zero Settlement
Same-day settlement, in which securities and funds are exchanged on the trade date itself.
Formula
Test: pay-in and pay-out both occur on the trade date rather than on a subsequent day
Unit
days
In depth
India introduced an optional T+0 cycle for a limited set of securities in 2024, running alongside the standard T+1 cycle, with a view to expanding it. Shorter settlement reduces counterparty exposure and frees capital faster, at the cost of compressing the window for correcting errors and requiring funds and securities to be available upfront. It also complicates arbitrage between the two cycles, since the same security can trade in both with slightly different prices. India moving to T+1 in 2023 already made it among the fastest major markets, and T+0 extends that further.
Worked example
Selling in the T+0 segment credits funds the same day rather than the next, which matters for anyone needing the money immediately. The same stock in the T+1 segment may trade at a marginally different price.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “T Plus Zero Settlement” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.