CS Executive · Capital Market and Securities Laws · Basics of Capital Market
Kavita holds shares of a listed company purchased on Monday. Under the current rolling settlement system for equity cash segment on Indian exchanges, the standard settlement cycle is:
The standard settlement cycle is T+1. Trades in the equity cash segment are settled on the next working day after the trade date under rolling settlement. The older weekly or fortnightly account period settlements and the T+3 cycle are no longer applicable.
- AT+1, where T is the trading dayCorrect
- BT+3, where T is the trading day
- CWeekly settlement on Fridays
- DFortnightly account settlement
Explanation
Indian equity markets moved to a T+1 rolling settlement cycle, under which trades are settled on the next working day after the trading day. Weekly or fortnightly account period settlement is the older system and is no longer used. T+3 was an earlier cycle that has been replaced.
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