NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
In the Indian equity cash market, trades are settled on a T+1 rolling settlement cycle. A trade executed on Monday, with no intervening holiday, will normally see the pay-in and pay-out of funds and securities on which day?
A Monday trade settles on Tuesday. Under the T+1 rolling settlement cycle in the Indian equity cash market, pay-in and pay-out occur on the first working day after the trade day, provided no holiday intervenes between the two days.
- AMonday itself
- BTuesdayCorrect
- CWednesday
- DFriday
Explanation
Under T+1 rolling settlement, pay-in and pay-out take place on the first working day after the trade day. With no holiday, a Monday trade settles on Tuesday. Wednesday would be the old T+2 cycle, which no longer applies to the equity cash segment.
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