NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments
Ms. Kavita Rao buys 200 shares of an Indian company on the NSE cash segment on Monday under the T+1 rolling settlement cycle, assuming no market holidays. By when will the shares ordinarily be credited to her demat account?
The shares are ordinarily credited on Tuesday. Equity cash trades in India follow a T+1 rolling settlement, meaning settlement occurs on the next working day after the trade date. Wednesday would reflect the older T+2 cycle, which no longer applies.
- ASame day, Monday
- BTuesdayCorrect
- CWednesday
- DThursday
Explanation
Under T+1 settlement, trades done on day T are settled on the next working day. A Monday trade therefore settles on Tuesday, and securities are credited to the buyer's demat account by then. Wednesday would correspond to T+2, the earlier cycle.
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