NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments
Ms. Meera Iyer buys 200 shares of an Indian company at Rs 500 each on the cash segment through a broker. Which settlement cycle applies to such a trade in equity shares on Indian exchanges under the present framework?
Equity cash market trades on Indian exchanges settle on a T+1 rolling basis, meaning settlement happens on the next working day after the trade date. T+2 was the earlier cycle. Weekly or fortnightly account period settlement is not used for these trades.
- AT+2 rolling settlement
- BT+1 rolling settlementCorrect
- CWeekly settlement on Fridays
- DFortnightly account period settlement
Explanation
Indian exchanges moved equity cash market trades to T+1 rolling settlement, with the transition completed in January 2023. Securities and funds are settled on the next working day after the trade. T+2 was the earlier cycle, while weekly or fortnightly account periods are not used for these trades.
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