Indian and European capital markets follows T+2 Rolling Settlement whereas countries like South Africa and United States follows T+3 settlement.
T is the transaction date
‘+2’ or ‘+3’ denotes the number of days for settlement
Thus, trades done on Monday are settled 2 working days later viz. Wednesday and In case of T+3 days, settlement is made after 3 working days i.e. on Thursday.
All transactions executed on the stock exchanges are to be settled through the Clearing Corporation/House of the stock exchanges. However, the following exceptions are provided:
Total connectivity failure to the exchange/STP (Specific connectivity issues of the custodians and members are not to be considered as valid exceptions).
International Holidays that may be decided upfront by the stock exchanges in consultation with the custodians.
Closing down of national/international centres due to calamities.
Subscribe Sulthan Academy and share with your friends. leave your queries in comment section.