NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which statement about the T+1 rolling settlement cycle in Indian equity markets is correct?
Under T+1 rolling settlement, a trade executed on day T is settled on the next working day. Funds and securities are exchanged then. T+2 was the earlier cycle, same-day settlement is T+0, and weekly account-period settlement was discontinued in favour of rolling settlement.
- ATrades done on day T are settled on the next working day after the trade dayCorrect
- BTrades done on day T are settled on the same day
- CTrades are settled only at the end of a weekly account period
- DTrades are settled two working days after the trade day
Explanation
Under T+1 rolling settlement, a trade executed on day T is settled on the next working day. Same-day settlement is T+0, two days later is the earlier T+2 cycle, and weekly settlement was the old account-period system.
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