NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which statement about the settlement cycle for equity cash market trades in India is correct?
Equity cash market trades in India are settled on a T+1 rolling settlement basis, meaning funds and securities are exchanged one working day after the trade. Older weekly or monthly account period systems and T+5 cycles are no longer used for these trades.
- ATrades are settled on a T+1 rolling settlement basisCorrect
- BTrades are settled on a weekly account period basis
- CTrades are settled only at month-end
- DTrades are settled on a T+5 basis
Explanation
Indian exchanges follow rolling settlement, and equity cash trades currently settle on a T+1 basis, meaning settlement happens one working day after the trade day. Weekly or month-end account periods are older, discontinued practices.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Securities Markets shows your real accuracy, how long you take and where you lose marks.
More Introduction to Securities Markets questions
- In the Indian securities market, which of the following is the primary function of the primary market?
- A company offers shares to the public for the first time and, after listing, the shares begin trading on the NSE. Which statement correctly …
- In the Indian securities market, which of the following best describes the function of the secondary market?
- Which of the following is a feature of the rolling settlement cycle for equity shares in the Indian cash market?
- In the Indian securities market, which of the following best describes the role of a clearing corporation after a trade is executed on a rec…
- In the Indian securities market, which of the following best describes the primary market?