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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments

Ms. Neha Iyer, aged 35, holds listed shares through a demat account and wants to understand settlement. She buys shares on the exchange on a Monday under the T+1 rolling settlement cycle in the equity cash segment. Assuming no holidays, by when will the shares be settled and delivered into her demat account?

Settlement happens on Tuesday. Under the T+1 rolling settlement cycle in the equity cash segment, trades settle one business day after the trade date, so a Monday purchase is delivered the next day. T+2 would give Wednesday but is no longer the cycle.

  1. ATuesdayCorrect
  2. BWednesday
  3. CFriday
  4. DMonday itself

Explanation

T+1 means settlement occurs one business day after the trade date T. A Monday trade therefore settles on Tuesday, with securities credited to the buyer's demat account and funds paid out. Wednesday would apply under T+2, which was the earlier cycle.

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