Trading Days and Trading & Settlement of trades

Trading Days: Trading on the Stock Exchanges takes place on all days of the week (except Saturdays, Sundays and holidays declared by the Stock Exchanges).
Payment and Delivery Requirements:
- For purchase of shares, payment must be made to the bank account of the stock broker prior to the pay-in day.
- For sale of shares, shares must be delivered to the demat account of the broker prior to the pay-in day.

Key Settlement Concepts

Pay-in Day: The day when brokers make payment or delivery of securities to the clearing corporation of the exchange.
Pay-out Day: The day when the clearing corporation makes payment or delivery of securities to the broker.
Settlement Cycle: On a T+2 rolling settlement basis, where T stands for the trade day. For example, trades executed on a Monday are typically settled on the following Wednesday.
Pay-in and Pay-out Process:
- Pay-in of funds/securities: Transfer of funds/securities from the broker's account to the exchange's account.
- Pay-out of funds/securities: Transfer of funds/securities from the exchange's account to the broker's account.

Always ensure that you keep adequate funds/securities in your bank/demat account before the date of pay-in of the settlement cycle of the trade.
Non-availability of sufficient funds/securities for settlement may lead to levy of penalty and further losses for the investor.