What are unsettled holdings or T1 holdings?

Unsettled Holdings or T1 Holdings Definition

Unsettled Holdings or T1 Holdings are holdings which are yet to be settled by the exchanges and the impact of transactions effected remains unsettled till the exchanges complete the T+2 settlement cycle.

The shares bought or sold on the stock exchange are settled or transferred after T+2 days i.e. 2 working days after the trade date. Suppose a person has bought 100 shares of Reliance Industries on Monday. The shares will get transferred from the sellers demat account to the buyers demat account on Wednesday (If all days are working days) via the exchange and the stock brokers.

Unsettled holdings or T1 holdings are the shares which have been bought from the exchange but the delivery has not yet  been received in the demat account of the client as T+2 day time period is not due. In the above example, since the shares were bought on Monday, on the next working day i.e. Tuesday, the shares will be shown in the holdings of the client as T1 holdings or unsettled holdings. The shares are due to the client but it has not been received yet.

You can check the T1 Holdings in your Nest Trader by clicking on “View Order/Trade Reports” and then selecting “View Holdings / Collateral Values”

Check T1 Holdings in NEST Trader
T1 Holdings in NEST Trader

This will open a new window showing the holdings. The shares held would be grouped in to the followings columns:

  1. Qty
  2. Used Qty &
  3. T1 Qty

To check the T1 holdings on the SAMCO Web Xpress, go to the “Position” Tab and click on “T1 Holdings”

T1 Holdings in SAMCO Web

This would open a new pop up window displaying the T1 holdings.

T1 Holdings in SAMCO Web

To check the Unsettled holdings in SAMCO STAR, after login, click on “Portfolio” and select “Holdings”.

Unsettled Holdings in SAMCO STAR

After this, click on the stock and this would display a detailed window of that script as shown below:

Unsettled Holdings in SAMCO STAR

Here one can check all the details about the stock like Unsettled Holdings, Broker Beneficiary Holdings, etc.

It is not advisable to sell the shares in the T1 holdings as there is a risk of auction. Continuing with the above example, suppose the client who has bought the reliance shares on Monday will get the delivery of shares on Wednesday. If on Tuesday when the shares are in T1 holdings, the client sells the shares. Thus in general cases the client will get the holdings on Wednesday in his demat account and he will be easily able to transfer it back on T+2 day from the sale day i.e. Thursday. However, it may happen that due to Short delivery by the original seller of the shares, the shares are not received on Wednesday but  are received on Thursday. As per the exchange rule, the client has to give delivery first and then receive it. Thus on Thursday, at the time of Payin, the client will not be able to deliver the shares and his shares would be auctioned and the client also has to pay the penalty for auction.

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