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Study the following case/situation and express your opinion. Ram a stock broker, traded on the stock exchange. He sells stock of Reliant Industries a listed public company on 1st March, 20xx - Secretarial Practice

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Question

Study the following case/situation and express your opinion.

Ram a stock broker, traded on the stock exchange. He sells stock of Reliant Industries a listed public company on 1st March, 20xx whereas the transaction gets settled on 5th March.

(No Holiday being declared to the stock market on the given dates).

Short Note

Solution

Ram sells Reliant Industries' shores on March 1st, 20xx, but the transaction is settled on March 5th. The transaction should be netted off in T + 2 days, according to the rules. The transaction is expected to be completed on March 3rd, 20xx. As a result, the settlement is not legal.

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2024-2025 (March) Model set 1 by shaalaa.com
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