NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
In the Indian equity cash market under the T+1 rolling settlement cycle, a trade executed on Tuesday (no holidays intervening) is ordinarily settled on which day?
A Tuesday trade settles on Wednesday because the Indian equity cash market follows a T+1 rolling settlement cycle, meaning funds and securities are exchanged on the next working day after the trade, provided no holiday intervenes.
- ATuesday itself
- BWednesdayCorrect
- CThursday
- DFriday
Explanation
Under T+1 rolling settlement, the pay-in and pay-out of funds and securities happen on the next working day after the trade day. A Tuesday trade therefore settles on Wednesday. Thursday would reflect the older T+2 cycle.
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