Buying and selling shares is as simple as pushing a button with online trading utilizing demat accounts. We often expect that after we click buy, the stock would be sent to our demat account right away. This isn't always the case, however. The T+2 settlement cycle is used on Indian stock exchanges, in which the Depository Participant transfers shares to the purchaser's account within T+2 trading days. However, sometimes, even after T+2 days, the acquired stock does not appear in the buyer's demat account. What should one do in such a circumstance? Continue reading to find out.
You may be wondering why, in this digital era when everything occurs at the touch of a button, depository participant settlement of shares might take up to T+2 days. The reason for this is because not all repository participants use the internet. Many heritage depository participants continue to employ the physical technique of taking checks and transferring ownership of shares using Delivery Instruction Slips.
This is why depository participants want a maximum settlement time of T+2 days. T+2 days denotes a maximum of two trading days after the transaction. T+2 days means Tuesday if the transaction is completed on a Friday, since Saturday and Sunday are trade holidays. It's important to know that this is the maximum amount of time your depository participant has to transfer your shares to your demat account. Frequently, the shares are transferred before this time frame as well. But what happens if shares aren't transferred after the T+2 deadline?
Even after T+2 days, your shares may not have been transferred to your demat account for a variety of reasons.
There are a slew of modest fees that must be paid to the depository participant while trading on a demat account. Although depository participants normally do not hinder the transfer of shares owing to modest overdue amounts, these costs may pile up over time, and your depository participant may delay the credit of shares to your demat account until these charges are paid. Unpaid margins, unfunded market-to-market losses, or yearly account maintenance fees are examples of these fees. In this instance, you should contact your depository participant or broker to address any outstanding costs that may apply.
It is possible that you will be able to acquire a particular number of shares, but that number will not be accessible for sale in the market within the time period specified. The shares will not be credited to your account until the seller makes them accessible. Although this is more common with large-cap stocks or firms with significant trading volume, it may also happen with small or mid-cap stocks with low trading volumes when the market is experiencing liquidity issues.
In this instance, the stocks that the vendor failed to deliver are auctioned, and you will either get the shares in your account within 5-6 days or receive a refund of your money. This information is sent to you by your depository participant. However, if your shares are not credited to your demat account within T+2 days, you should contact your broker immediately.
Typically, shares purchased via your demat account are transferred to your account within T+2 business days. However, there may be a delay for a variety of reasons, including outstanding depository participant dues, insufficient liquidity in the acquired shares, or frequent BTST activity. In each event, you should contact your broker on T+3 as soon as possible to escalate the situation.
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