NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
In the Indian equity cash market, trades executed on a normal rolling segment of a recognised stock exchange are currently settled on which basis?
Equity cash market trades in India are settled on a T+1 rolling basis, meaning settlement of funds and securities occurs on the next working day after the trade day. Older cycles such as T+3 or T+5 and weekly account periods are no longer used.
- AT+1 rolling settlementCorrect
- BT+3 rolling settlement
- CWeekly account period settlement
- DT+5 rolling settlement
Explanation
Since the move to a shortened cycle, equity cash market trades in India settle on a T+1 rolling basis, where T is the trade day. T+3 and T+5 were earlier cycles, and weekly account period settlement was discontinued long ago.
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