T+1 settlement

The cycle under which an Indian equity trade settles on the day after it is executed, with shares delivered and money paid on that day.

The practical consequence appears around record dates. To receive a dividend, a buyer must own the shares on the record date, and since delivery arrives the day after the trade, the purchase has to happen at least one trading day earlier.

For a dividend with a record date on a Tuesday, a purchase on the Monday settles on the Tuesday and qualifies. A purchase on the Tuesday itself settles on the Wednesday and does not.

Count backwards from the record date, in trading days.