Since 2003, it has been made compulsory to settle all stock market trade on a rolling settlement basis within:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → T+ 2 days
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. NTA keeps the pre-rationalised NCERT close by for this chapter, so keep it close too.
NCERT (Pre-rationalised Edition): “Steps in the Trading and Settlement Procedure It has been made compulsory to settle all trades within 2 days of the trade date, i.e., on a T+2 basis, since 2003. Prior to the reforms, securities were bought and sold, i.e., traded and all positions in the stock exchange were settled on a weekly/fortnightly settlement cycle whether it was delivery of securities or payment of cash. …” “…Since 2003, all shares have to be covered under the rolling settlement system on a T+2 basis, meaning thereby that transactions in securities are settled within 2 days after the trade date. …” |