It has been made compulsory to settle all trades within 2 days of the trade, i.e. on a T+2 basis, since 2003. Prior to the reforms, the securities were traded and all positions in the stock market were settled on a _______ settlement cycle whether it was delivery of securities or payment of cash
It has been made compulsory to settle all trades within 2 days of the trade, i.e. on a T+2 basis, since 2003. Prior to the reforms, the securities were traded and all positions in the stock market were settled on a _______ settlement cycle whether it was delivery of securities or payment of cash
Solution
✅ Correct Option: 1
Before the reforms, all positions in the stock market, whether delivery of securities or payment of cash, were settled on a weekly or fortnightly settlement cycle. The reforms replaced this with rolling settlement, and since 2003 all trades must be settled on a T+2 basis.
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