Rolling Settlement

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Ankit (Querist)
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20 January 2010 I have 2 queries

1. What is rolling settlement and how the transactions are settled in it?

2. What is T+2 and T+3?

Please reply

Thanking in advance

Professional Careers Academy

Professional Careers Academy (Expert)
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21 January 2010 In Rolling Settlement Each day constitutes an accounting period and that days trades are settled after 2 â€“ 3 days. (T + 3) rolling settlement was in operation in India upto 31st March, 2003, which was switched on to â€œT+2â€ rolling settlement system from 1st April, 2003.Trades outstanding at end of day are to be settled within â€˜Xâ€™ business days form transaction. Trades on each single day settled separately from trades done earlier or subsequent trade days.Netting of trades is done only for the day & not for multiple days (as earlier in settlement period).
ï† T+2, transaction on Monday pay in & pay out takes place on Wednesday.
ï† If member fails to deliver shares sold the exchange conducts an auction session on T+3 to meet short fall due to non-delivery.
regards,
CA Jatin Bansal

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