Prescribed Pay In And Pay Out Days
Updated on March 10, 2023
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.
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.
The exchanges have to ensure that the pay-out of funds and securities to the clients is done by the broker within 24 hours of the payout.
