NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market
A trading member's client wants to buy shares of a company that is listed on the exchange and traded in the rolling settlement segment. Under the current standard cycle in India's equity cash market, trades are settled on which basis?
Equity cash market trades in India are settled on a T+1 rolling settlement basis, meaning a trade done on day T is settled on the next working day. Older T+3 cycles and weekly or fortnightly account period settlements are no longer used.
- AT+1 rolling settlementCorrect
- BT+3 rolling settlement
- CWeekly account period settlement
- DFortnightly settlement with carry forward
Explanation
Indian equity cash market trades are settled on a T+1 rolling basis, where trades done on day T are settled on the next working day. T+3 was an earlier cycle replaced years ago. Account period and fortnightly settlements were discontinued.
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