Question

It has been made compulsory to settle all trades within how many days of the trade date on a rolling settlement basis?

Options

• One

• Two

• Three

• Four

Answer 1

Two

Explanation - 

On the pay-in day, which is before the T + 2 day, cash or securities are provided, as the ideal must be settled and finalised on the T + 2 day. On a rolling settlement basis, the settlement cycle is T + 2 days.