Pay in Day is the day when shares to be sold by the client are picked up or debited from the Demat account and then transferred to the broker’s account. These shares are then delivered to the clearing corporation. Thus, the date on which shares are transferred to the broker/sub-broker or custodian after the investor sells the shares is called the Pay-in date.
What is Pay out Day
Pay out Day is when shares which the client wants to buy are received from the clearing corporation and then transferred to the broker’s account. This then reflects in the client’s Demat account as well. Thus, the day when the buyer receives the shares from the broker is called the pay-out date. Brokers need to make payments or deliver securities within two working days of the pay-out day. After a transaction, the settlement date is generally two working days from pay-out day, which is known as T+2.