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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Trading and Settlement

Ms. Kapoor bought shares on Monday under T+1 rolling settlement, with no holidays in the week. In which circumstance would the shares normally be credited to her demat account through the clearing corporation's pay-out?

Under T+1 rolling settlement, shares bought on Monday are settled on the next working day, Tuesday. The clearing corporation pays out the securities, which are credited to the client's demat account directly or through the broker's pool account.

  1. AOn Tuesday, as the settlement day after the trade, via the broker's pool account or directly to her accountCorrect
  2. BOn Monday itself, within the same trading hour only
  3. CAfter thirty days
  4. DOnly after she submits a physical share certificate

Explanation

Under T+1 settlement, the trade on day T settles on the next working day. The securities are paid out on Tuesday and credited to the client's account, either from the broker's pool account or directly where the client is credited. Same-hour or thirty-day credits are incorrect.

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