The settlement cycle in NSE is ______ days.

T+2

The correct answer is Option (4) → T+2.

Rolling Settlement System refers to the method of settling trades in the stock market, where the settlement of a trade takes place a few days after the trade date. The most common system is T+2, meaning that the settlement occurs two days after the trade date (i.e., the buyer must pay and the seller must deliver the securities within two working days after the trade). This system improves liquidity and reduces the risk of defaults.

Note: This question is made from pre rrtionalised NCERT (2020-2021) when the settlement cycle was T +2. hence, the given answer is as per NTA/NCERT. 

The shift from T+2 to T+1 was implemented in a phased manner by Securities and Exchange Board of India (SEBI) starting in February 2022. Different stocks were gradually brought under the T+1 system. By January 2023, all listed stocks on the National Stock Exchange (NSE) had fully transitioned to the T+1 settlement cycle, making it the standard settlement period in India.