n NISM Certifications
VII NISM Series VII
Medium

In which type of settlement is a trade executed on 'T' day settled on T+X trading days, where 'X' can be 1–5 days?

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Systematic Settlement

  2. B

    Cyclical Settlement

  3. C

    Accounting Period Settlement

  4. Rolling Settlement

    Correct answer

Why this is the answer

Rolling Settlement means that trades executed on day T are settled after X trading days (commonly T+1 in India). It provides continuous and efficient clearing and settlement.

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