Instant Settlement, also known as Real-Time Settlement or T+0 Settlement, is a process that allows investors to receive the proceeds from the sale of stocks or mutual funds almost immediately, typically within a few seconds or minutes. In traditional settlement systems, it used to take several days for the funds to reach the investor's account after selling their investments. However, with Instant Settlement, the transfer of funds happens in real-time, enabling quicker access to cash.
For Stocks | For Mutual Funds |
| In the context of stocks, Instant Settlement means that when you sell shares of a company, the money from the sale is credited to your brokerage account right away. This is a significant improvement from the conventional settlement process, where it took a few days for the sale proceeds to be available for use. Instant Settlement in stocks provides investors with faster access to their funds, allowing them to reinvest or withdraw the money more efficiently. | In the case of mutual funds, Instant Settlement means that when you redeem or sell your mutual fund units, the proceeds are credited to your bank account in real-time. Previously, it would take a few days for the redemption amount to be transferred to your account. With Instant Settlement for mutual funds, investors can now get their money immediately, providing them with greater flexibility and control over their finances. |
Read here about the many benefits of opting for instant settlement.
