SETTLEMENT SYSTEM
Trading in equities is internationally done on rolling settlement basis.
The settlement is done on T + 2 system (i.e., the trade will be settled on the 2nd day from the date of execution of the transaction).
SEBI has encouraged the stock exchanges to shorten their settlement cycle further to T + 1.
Typically, trades taking place on Monday are settled on Wednesday, while trades on Tuesday settled on Thursday and so on.
In case of trading in dematerialized securities, rolling settlement has been introduced. Further, with the availability of the facility of electronic funds transfer, Delivery Versus Payment (DVP) system is being introduced.
Trading in equities is internationally done on rolling settlement basis.
The settlement is done on T + 2 system (i.e., the trade will be settled on the 2nd day from the date of execution of the transaction).
SEBI has encouraged the stock exchanges to shorten their settlement cycle further to T + 1.
Typically, trades taking place on Monday are settled on Wednesday, while trades on Tuesday settled on Thursday and so on.
In case of trading in dematerialized securities, rolling settlement has been introduced. Further, with the availability of the facility of electronic funds transfer, Delivery Versus Payment (DVP) system is being introduced.