The T1 in Zerodha holdings is the holding summary of the shares bought but not yet credited into your Demat account.
In India, we have a T+2 settlement cycle. When you buy the shares on T day, you receive them in your Demat account only on T+2 by evening. Thus, even when you have purchased a stock, you cannot claim to have the entire stock quantity until T+2. If you sell this stock before T+2, you always run a risk of shortage and thus short delivery.
Zerodha segregates the customer holding in two menus for ease of tracking. One is T1 holdings, and the other is Holdings (T2 shares). T1 holdings are the unsettled stocks for which the delivery is awaited, and Holdings (T2 shares) are the confirmed stocks in your possession. The purchased shares get reflected in T1 holdings on T day, T+1, and T+2 day. Once you receive the shares in your Demat account on T+2 evening, these get moved to Holdings after T+2.
For example, if you have bought 100 shares of ABC Ltd. on Friday (T day), these will reflect in T1 holdings till Tuesday (being T+2). After Tuesday, these will move to holdings.
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