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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Operational Aspects of Investment Management

Mr. Rohan Mehta buys shares on the exchange on a Monday under the T+1 rolling settlement cycle, assuming no holidays. When will the settlement of this trade normally take place?

Under T+1 rolling settlement, a trade done on Monday settles on the next working day, Tuesday, assuming no holidays. Wednesday would apply under the older T+2 cycle, while same-day settlement is not the standard cycle.

  1. AOn Monday itself
  2. BOn TuesdayCorrect
  3. COn Wednesday
  4. DOn Friday

Explanation

T+1 means settlement occurs one working day after the trade date. A Monday trade therefore settles on Tuesday, absent holidays. T+2 would give Wednesday.

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