Your shares will start appearing in your demat account within just one day.
T plus one (T + 1) settlement is going to be implemented in Indian Sherbazars from tomorrow i.e. 25 February 2022. At present, it will be started with only a few shares, after which 500 more shares will be added every Friday. Till now the T+2 system was in practice in the Indian stock exchanges, which was registered in April 2003. However, displeasure was expressed by many foreign investors for this. Due to which this new system is being implemented now. Under this, whatever shares you buy will be deposited in your demat account within 24 hours.
SEBI had planned to introduce this system in September last year itself. Under which earlier all investors were given the option to enter T+1 as a voluntary option. However, now on the last Friday of February, the new settlement cycle will be implemented in the lowest 100 stocks in terms of market capitalization. After this, on the last Friday of other months, this system will be implemented in 500 stocks.
The new system will reduce the risk of pay-in and pay-out defaults. Investors will get more liquidity along with funds and securities based on lower margin requirement. However, there is a possibility of a decrease in trading volume in the initial days. However after that they will increase again.