T+2 Settlement Cycle (T+2) denote that the seller must deliver the purchased security and the buyer must make payment on the 2nd Exchange Day after the occurrence of the Exchange Transaction.
Brief Explanation T+2
As technological developments have enabled more rapid communications and practices improvement adopted by various Stock Exchange globally, one of the recommendations for Capital Market Development is to shorten settlement cycle. Currently, various European, Asian, and American Stock Exchanges have gradually begun to reduce their settlement cycle from T+3 to T+2.
Benefits expected from T+2 are settlement process efficiency, aligning with leading global settlement practices, enhance liquidity in the Market, enabling capital to be freed up faster for reinvestment, and mitigate systemic risk.