T refers to the day on which the transaction took place. T+2 means that the buyer must pay the amount in full to the seller by the second trading day after the transaction and the seller must provide the shares to the buyer by the second trading day after the transaction.
For all trades executed on trading day i.e. T day the obligations were determined on the T+1 day and settled T+2 basis i.e. on the 2nd working day.
However, with effect from 27th January 2023, all the scrips in the equity segment have been moved to T+1 settlement cycles. For more details, refer to this notice.
For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded.
What is rolling settlement?
In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Trades in the rolling settlement are settled on a T+1 basis (i.e. 1st working day). ...
What is meant by ‘X’ Settlement or Cash Settlement?
Cash settlement occurs when a client has purchased equity shares in delivery, but the exchange failed to deliver the shares on T+1 day. There are two ways settlements happen if there is a delivery shortage: Internal Settlement: Internal settlement ...
What is Trade for Trade (T for T) segment?
Unlike in rolling settlement, scrips listed in Trade for Trade segment are settled on a trade for trade basis and no netting off of obligations is allowed. This means that scrips listed under this segment cannot be sold before they have been settled, ...
Will Physical settlement apply to the buyer of an option?
In short, Yes! As per the SEBI guidelines, In The Money (ITM) stock options contracts are due for physical settlement irrespective of the nature of the transaction. Still unclear? Let us take a look at the implications of physical settlement from ...
What is End of Day (EOD) MTM settlement?
It is mandatory for Futures derivative positions to be settled in cash on a daily basis. At the end of each day, settlement of open futures positions takes place at the exchange provided closing price. The difference between the opening price and the ...