NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
A client buys shares on Monday under the T+1 rolling settlement cycle, with no holidays in the week. On which day does the pay-in for this trade take place?
Pay-in takes place on Tuesday. Under T+1 rolling settlement, funds and securities are settled one working day after the trade date, so a Monday trade settles Tuesday. Wednesday would correspond to the older T+2 cycle.
- AMonday
- BTuesdayCorrect
- CWednesday
- DThursday
Explanation
In T+1 settlement the pay-in and pay-out occur on the next working day after the trade day. Monday plus one working day is Tuesday. Wednesday would apply to T+2, which is the wrong cycle here.
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