Key takeaways
- On PSX, a normal trade settles two business days after the trade date.
- You trade on day T; shares and funds change hands on T+2.
- Weekends and market holidays stretch the calendar gap between trade and settlement.
What T+2 means
T is the trade date, when your order matches on the exchange. T+2 is two business days later, when settlement completes: the buyer pays and the seller delivers shares through the clearing chain.
Matching is immediate in the sense of a trade print; legal and operational finality of cash and securities follows the settlement cycle.
Why the cycle matters to you
Cash planning depends on settlement. Selling today does not always mean spendable proceeds today.
Corporate-action entitlements and the ability to sell shares you just bought also follow settlement and exchange rules, not just the trade timestamp on your screen.
Business days vs calendar days
Only market business days count. A trade on Thursday may settle the following Monday if Friday is a working day and the weekend falls in between, or later if holidays intervene.
When in doubt, check your broker's settlement calendar for that trade.
FAQs
Can settlement ever be faster than T+2?
Standard cash-market equity trades follow the exchange's prescribed cycle. Special cases are defined by market rules; do not assume same-day finality.
Who handles settlement?
Clearing and settlement run through NCCPL and related market infrastructure after the exchange match.