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

Which of the following is a feature of a stock exchange's rolling settlement in the Indian equity cash market at present?

Indian equity cash market trades are settled on a T+1 rolling settlement basis, meaning settlement occurs one working day after the trading day. Older practices such as weekly account periods or longer cycles like T+5 are no longer followed.

  1. ATrades are settled on a T+1 basis, where T is the trading dayCorrect
  2. BTrades are settled only at the end of a weekly account period
  3. CTrades are settled on a T+5 basis
  4. DTrades are settled only on a net basis after one month

Explanation

Indian equity cash markets follow a rolling settlement cycle, which has moved to T+1 for equities. Weekly account periods and longer cycles are old practices no longer used for cash market trades.

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