NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
Rohan, a client, buys shares on the cash segment on Monday under the T+1 rolling settlement. When will the pay-in and pay-out of the securities and funds normally take place?
Under T+1 rolling settlement, a trade done on Monday is settled on the next business day, Tuesday, with pay-in and pay-out of funds and securities occurring then. Wednesday would correspond to the older T+2 cycle and is therefore incorrect.
- AOn Monday itself
- BOn Tuesday, the next trading dayCorrect
- COn Wednesday
- DOn Friday
Explanation
Under T+1 rolling settlement, trades done on day T are settled on the next working day. A Monday trade therefore settles on Tuesday, assuming it is a business day and not a holiday. Wednesday would be T+2, which is the older cycle.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Securities Broking Operations shows your real accuracy, how long you take and where you lose marks.
More Introduction to Securities Broking Operations questions
- A broker executes a client's purchase of shares on 10 March. By when must the broker ordinarily issue the contract note to the client as per…
- A trading member wants to take a proprietary position and also trade for clients. Which practice is required for keeping client and own mone…
- Mr. Iyer bought 200 shares of an Indian company through his broker on the exchange on Monday. By when must the broker ordinarily issue the c…
- Under the SEBI framework for stock brokers, a client's trading account is opened with a broker. Which document is the standard set of rights…
- A broker is required to issue contract notes to clients for trades executed on the exchange. Within what time frame must the contract note o…
- Which document must a stock broker issue to a client for trades executed, giving details such as trade time, price, quantity and brokerage?