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      Question

      What is the settlement cycle in Indian stock

      market?
      A T+0 Correct Answer Incorrect Answer
      B T+1 Correct Answer Incorrect Answer
      C T+2 Correct Answer Incorrect Answer
      D T+3 Correct Answer Incorrect Answer
      E T+5 Correct Answer Incorrect Answer

      Solution

      On January 27, 2023, India adopted the T+1 (Trade + 1) settlement cycle. The T+1 settlement cycle requires all trade-related settlements to be finalised within one business day of the transaction.  India had weekly settlement system until 2001. In April 2002, the Indian capital markets introduced T+3 rolling settlement cycle.  The settlement cycle of T+3 under the Rolling Settlement System, was shortened further to T+2 rolling settlement, w.e.f. April 01, 2003. With effect from January 01, 2022, flexibility was provided to recognized Stock Exchanges (“SEs”) to offer either T+1. From Jan 2023, T+1 settlement cycle was fully implemented.

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