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What is T1 in Zerodha
What is meant by t1 in Zerodha: T1 in Zerodha is an overview of purchased shares that have yet to be deposited into your Demat account.
As you know, Indian stock market operates on a T+1 settlement cycle; when you buy shares on T day, they only arrive in your Demat account on the evening of T+1.
So even after purchasing stock, you cannot be guaranteed to possess all of it until T+1.
And for that, Zerodha has organized its customer holdings into two menus for easier tracking.
T1 Holdings and Holdings (T2 Shares). T1 Holdings refer to unsettled stocks awaiting delivery, while Holdings (T2 shares) represent confirmed stocks in your possession.
Once purchased shares are delivered into your Demat account on T+1 evening, they are moved from T1 holdings into Holdings after T+1 evening.
Example: If you purchased 100 shares of ABC Ltd on Tuesday (T day), these will appear as T1 holdings until Wednesday (T+1 day). After Wednesday, these shares will move into holdings.
Where to Find T1 in Zerodha
T1 quantity in Zerodha are displayed in the “Holdings” tab of your Kite or Console account. The T1 holdings will show the following information:
- The number of shares you have bought
- The price you bought them at
- The value of your T1 holdings
Here in the following picture; you can see the T1 holding of ‘Radico’ stock as 50, which means the investor bought 50 shares of Radico but those shares have yet to be credited into his/her Demat account.
How to Sell T1 Holdings in Zerodha Kite
No, you can’t sell T1 quantity in Zerodha Kite.
Suppose you sell T1 holdings before they have been deposited in your demat account. In that case, there is the potential risk that they will arrive after delivery, leading to short delivery and subsequent penalties from both your broker and the stock exchange.
You can only sell T1 in Zerodha on the T+1 day, which is the day after you bought them. And for that, you can check the status of your T1 shares in your Zerodha account.
Restrictions on T1 Quantity in Zerodha
T1 in Zerodha can only be used within certain restrictions:
- Your T1 quantity in Zerodha can only be sold once transferred into your demat account.
- Your proceeds from selling T1 holdings cannot be used to place additional trades on the same day.
- Dividends or bonus shares on T1 holdings will only become payable once credited to your demat account.
Tips for Successful Management of T1 Quantity in Zerodha
Here are a few strategies for effectively managing T1 in Zerodha:
- Be mindful of the T+1 settlement cycle, and don’t sell T1 holdings before they have been credited to your demat account.
- If you need to sell T1 quantity in Zerodha before they have been deposited in your demat account, an Early Pay-In (EPI) could provide an option.
- If you need more information regarding your T1 holdings, please contact a broker for more guidance.
Frequently Asked Questions about What is T1 in Zerodha Kite
Wrap up on What is T1 in Zerodha
T1 in Zerodha are shares that have been bought on the current trading day, but have not yet been credited to your demat account. T1 quantity in Zerodha is displayed in the “Holdings” tab of your Kite or Console account.
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