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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets

Under the rolling settlement cycle for equity cash market trades in India, a trade done on Monday under the T+1 cycle is settled on which day, assuming no holidays intervene?

Under T+1 rolling settlement, a trade done on Monday is settled on Tuesday, one working day after the trade date, provided there are no holidays. Wednesday would apply only to the older T+2 cycle, which is no longer the equity cash market standard.

  1. AMonday itself
  2. BTuesdayCorrect
  3. CWednesday
  4. DThursday

Explanation

T+1 means settlement occurs one working day after the trade date (T). A trade on Monday is therefore settled on Tuesday when there are no holidays. Wednesday would correspond to T+2, the earlier cycle.

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