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    100 shares of reliance ltd. are purchased on friday, the settlement will take place on ?

    Mohammed

    Guys, does anyone know the answer?

    get 100 shares of reliance ltd. are purchased on friday, the settlement will take place on ? from screen.

    Settlement Holiday and its Impact – Z

    Traders, What is delivery based equity trading? When you buy stocks and hold it overnight, we call it delivery based equity trading. If you buy/sell stocks and exit it before 3.30 PM, it is called intraday trading. What type of account is required to trade delivery based equity? You will need a trading account through […]

    Settlement Holiday and its Impact

    139 comments APRIL 10, 2013

    Holidays, Stock and F&O Queries

    Traders,

    What is delivery based equity trading?

    When you buy stocks and hold it overnight, we call it delivery based equity trading. If you buy/sell stocks and exit it before 3.30 PM, it is called intraday trading.

    What type of account is required to trade delivery based equity?

    You will need a trading account through which you would be buying and selling stocks. Stocks bought would be credited to your demat account and if you have sold delivery stocks, such stocks would be debited from your demat account. Note that demat account is very similar to your bank locker and demat account is required only for trading equity (intraday or delivery) and not for trading F&O.

    What is a settlement?

    settlement delay

    When trading stocks in India, equity settlement happens on T+2 days. ‘T’ meaning the trade day or day you traded.

    So for example if you bought shares on Monday(T day), the shares will be credited to your demat account on Wednesday( Monday is T day, Tuesday is T+1 and Wednesday is T+2 day).

    Similarly if you sold the shares on a Friday(T day), the funds will be available for withdrawal on Tuesday (Monday is T+1 day and Tuesday is T+2 day. Saturday and Sunday are not considered as working days).

    Both the cases above are called as Normal settlement, but once in a while we have these situations when exchanges are open but depositories are closed.

    Exchanges are where you have your trading account, so you will be able to buy/sell, but since depositories are closed, you will not be able to take delivery of shares on those days to your demat account.

    3 things all of you need to be aware of is that when you buy stocks for delivery (using product type as CNC):-

    On Zerodha, Your stocks on T+1 day will show in T1 holdings, Click here to read the risks of selling stocks before taking delivery from your T1 holdings.

    On Zerodha, Your stocks on T+2 day will also show in T1 holdings because the delivery of stock happens only on T+2 evening.

    On Zerodha, Your stocks from T+3 onwards will show in demat holdings.

    Settlement Holiday?

    We have 2 stock exchanges in India NSE, BSE and 2 depositories NSDL and CDSL.

    What happens when the stock exchanges are open and depositories which hold your demat accounts are closed? It basically causes confusion and this blog is intended to educate you about the same.

    The stock exchanges are open on Thursday, April 11, 2013, but it is a settlement holiday(depository holiday) on the occasion of Ugadi/Gudi Padwa.

    Stocks bought on April 10 (Wed), would reflect in T1 Holdings on April 11 (Thu) and April 12 (Fri). Ideally, the stocks would have gotten credited to your demat account on April 12 (Friday Evening) and would have shown in your Demat Holdings from April 15 (Monday Onwards) but since Thursday was a DP holiday, the stocks would be delivered only on Monday (April 15) [T+1 Day being Friday and T+2 Day being Monday] instead of Friday (April 12).This means that stocks bought on April 10 (Wed) would not show anywhere on April 15 [Monday] and would show under Demat Holdings from April 16 (Tuesday) onwards.

    Additionally, on account of it being a settlement holiday, the Banks would remain closed because of which the settlements (payin and payout of funds) in the derivative & Equity segment doesn’t happen too. This would mean that if there are any MTM credits posted on your account, such credit would get settled on T+2 (For Derivatives) and T+3 (For Equity) instead of the usual T+1 and T+2 for Derivatives and Equity respectively. Such unrealized credits would not be considered towards margin reporting and hence you’re required to ensure that you’re maintaining sufficient free balance for the positions you’re taking.

    You don’t need to worry much because it is only a few times a year that the depositories are closed but the stock exchanges are open. The following are such days for the year 2013:

    Click here to see holiday calendar on NSE/BSE.

    The days which are holidays for depositories but not for the exchange are the following for 2013:

    1.  25th Jan 2013 Friday Id-E-Milad

    2.  19th Feb 2013 Tuesday Chhatrapati Shivaji Maharaj Jayanti

    3.  1st Apr 2013 Monday Annual Closing of Banks

    4.  11th Apr 2013 Thursday Gudi Padwa/Ugadi

    5.  1st Jul 2013 Monday Annual Closing of RBI

    6.  30th Sep 2013 Monday Half year Bank Closing

    Here’s an example, assuming you only buy and have not sold the purchased stocks:

    Day of Week Trade Executed    Position on Terminal

    Monday Bought Reliance

    Tuesday Bought TATA Steel Reliance in T1

    Wednesday (Depository Holiday): Reliance in T1, TATA Steel in T1

    Thursday NO RELIANCE, TATA Steel in T1

    Friday Reliance in Demat Holding,No TATA Steel

    Saturday Onwards Both Reliance and Tata steel in Demat

    Again in brief, If today is a settlement holiday but exchanges are open then:

    स्रोत : zerodha.com

    [Solved] 100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, the settlement should take place on _____ _?

    report this ad Q.

    100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, the settlement should take place on _____ _?

    A. Wednesday (T+2) B. Tuesday (T+1) C. Thursday (T+3) D. Friday (T+4)

    Answer» A. Wednesday (T+2)

    View all MCQs in:

    Investment Management

    Discussion

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    11 hours ago

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    स्रोत : mcqmate.com

    Stock market: Stock market shifts to T+1 settlement cycle

    The Indian stock market shifted to the shorter and quicker T+1 or 'Trade plus 1' settlement cycle on Friday. In the first phase, 100 stocks based on the lowest market capitalisation on the NSE were put under the new settlement cycle.

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    Business News›Markets›Stocks›News›Stock market shifts to T+1 settlement cycle

    Stock market shifts to T+1 settlement cycle

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    Stock market shifts to T+1 settlement cycle

    ET BureauLast Updated: Feb 26, 2022, 08:30 AM IST

    SHARE FONT SIZE SAVE Synopsis

    The Indian stock market shifted to the shorter and quicker T+1 or 'Trade plus 1' settlement cycle on Friday. In the first phase, 100 stocks based on the lowest market capitalisation on the NSE were put under the new settlement cycle.

    In April 2003, the regulator had shortened the settlement cycle from T+3 rolling settlement to T+2.

    Mumbai: The Indian stock market shifted to the shorter and quicker T+1 or 'Trade plus 1' settlement cycle on Friday. In the first phase, 100 stocks based on the lowest market capitalisation on the NSE were put under the new settlement cycle. This means those transacting in shares falling under the T+1 settlement cycle will get their money or shares delivered within 24 hours.

    Henceforth, 500 stocks will be added under the new settlement system on last Friday of every month

    At present, trades on Indian stock exchanges are settled within two days after they take place, known as T+2 settlement. A shift to the T+1 system would result in settlements happening the next day, a move aimed at making the market more efficient by reducing the time between cutting a deal and its conclusion. Most global markets still follow the T+2 settlement system. The new norms have been introduced despite opposition from some foreign investors.

    "T+1 should be a good move making settlement cycle shorter reducing margin requirement for clients with margin blocked for just one day, thereby increasing retail participation and investments coming to equity markets," said Anupam Agal, head operations & legal, Motilal Oswal Financial Services.

    "T+1 settlement system will shorten the settlement cycle by a day reducing the risk of pay-in/pay-out defaults, lower margin requirements and give investors more liquidity with the availability of funds and securities," he added.

    In April 2003, the regulator had shortened the settlement cycle from T+3 rolling settlement to T+2.

    READ MORE NEWS ON

    Stock MarketSettlement CycleT+1SharesTrades

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    स्रोत : economictimes.indiatimes.com

    Do you want to see answer or more ?
    Mohammed 4 day ago
    4

    Guys, does anyone know the answer?

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