NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which of the following is a feature of the rolling settlement cycle for equity shares in the Indian cash market?
In rolling settlement, trades executed on a day are settled after a fixed number of working days from the trade day, on a continuous daily basis. This replaced the old account period system where trades over a period were settled together.
- ATrades of a whole month are settled together on the last Thursday
- BTrades executed on a day are settled on a fixed number of working days after the trade day, on a continuous basisCorrect
- CSettlement happens only when the investor requests it
- DSettlement is done only in physical share certificates
Explanation
In rolling settlement, each day's trades are settled after a fixed number of working days (T+1 for equity currently), so the cycle rolls forward daily. Account period settlement, where a whole period was settled together, is the old system and is not in use now.
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