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NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market

A trade is executed on Monday in the equity cash segment under the T+1 rolling settlement cycle, with no exchange holidays in the week. On which day does the pay-in and pay-out of funds and securities for this trade normally occur?

Settlement occurs on Tuesday. Under the T+1 rolling settlement cycle in the Indian equity cash market, pay-in and pay-out take place on the first working day after the trade day, so a Monday trade settles on Tuesday when there are no holidays.

  1. AMonday, the same day
  2. BTuesdayCorrect
  3. CWednesday
  4. DThursday

Explanation

Under T+1, settlement is completed on the first working day after the trade day (T). A Monday trade settles on Tuesday. Wednesday would be T+2, the earlier cycle, and Thursday would be T+3. Same-day settlement is not the standard cycle.

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