NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
An investor buys 200 shares at Rs 150 each under the rolling settlement on a Monday (T day). Under the standard T+1 rolling settlement cycle for equity shares, when is the settlement of this trade due, assuming no holidays?
Under T+1 rolling settlement, a trade done on Monday settles on the next business day, Tuesday, if there are no holidays. Wednesday would correspond to the older T+2 cycle, and same-day settlement would be T+0, which is not the standard cycle.
- AOn Monday itself
- BOn TuesdayCorrect
- COn Wednesday
- DOn Friday
Explanation
T+1 means settlement occurs one business day after the trade day. A Monday trade settles on Tuesday. Wednesday would be T+2, the earlier cycle, and Monday would be T+0.
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