NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
In the Indian equity cash market, trades in the normal rolling segment are settled on which basis under the current SEBI framework (T+1 settlement cycle)?
Equity cash market trades in India follow a T+1 rolling settlement, meaning funds and securities pay-in and pay-out are completed on the next working day after the trade date. Earlier cycles such as T+2 or weekly settlement are no longer the standard.
- ATrade date plus one working day (T+1) for funds and securities pay-in and pay-outCorrect
- BTrade date plus three working days
- CWeekly settlement on Fridays
- DSame day (T+0) settlement for all trades
Explanation
SEBI moved equity cash market trades to a T+1 rolling settlement, so pay-in and pay-out of funds and securities occur on the next working day after the trade. T+2 and weekly settlement are earlier or obsolete practices, and optional T+0 is not the standard cycle for all trades.
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