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 a Monday is ordinarily settled on which day, assuming no intervening holidays?
A trade executed on Monday settles on Tuesday under the T+1 rolling settlement cycle, because settlement happens one working day after the trade day, provided no holidays intervene between the two days.
- AMonday itself
- BTuesdayCorrect
- CWednesday
- DThursday
Explanation
T+1 means the trade day plus one working day. A Monday trade therefore settles on Tuesday when there are no holidays. Wednesday would correspond to a T+2 cycle, which is no longer the standard for equities.
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