NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments
Ms. Kavita Rao buys 200 shares of an Indian company at Rs 500 each in the cash segment on a Monday. Under the standard T+1 rolling settlement cycle, on which day will the settlement of this trade normally be completed, assuming no holidays intervene?
The trade settles on Tuesday. Under T+1 rolling settlement in Indian equity markets, funds and securities are exchanged one working day after the trade date, so a Monday purchase is settled the next working day, Tuesday, provided no holidays intervene.
- AMonday, the same day
- BTuesdayCorrect
- CWednesday
- DThursday
Explanation
T+1 means settlement happens one working day after the trade day (T). A Monday trade therefore settles on Tuesday. Wednesday would correspond to T+2, the earlier cycle, and same-day settlement is not the standard rolling cycle.
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