SlideShare a Scribd company logo
ROLLING SETTLEMENT IN
TRADING PROCESS
BASED ON T DAY CONCEPT
INTERMEDIARIES
• SELLER AND BUYER entered in to contract
through registered brokers/authorised
persons of stock exchange.
• This order would be placed in the stock
exchange by the brokers on behalf of the
seller and the buyer.
Clearing houses of stock exchange
• These orders in the stock exchange gets
matched and it becomes a trade.
• Price strike
• The day is known as T day
• Trade day
Clearing houses
• The stock exchange has strict rules and
regulations and defaults on the part of issuing
securities is managed by clearing houses.
• NSE has NSCCL
Trade would be executed by these clearing
houses,they download the transactions related
to money receivable/money payable and
securities receiveable/securities payable.
• These clearing houses informs the broker and
which in turn intimate to the investors
• T day= trade day
• T+1=calculation day
• T +2= settlement day
• On t+2 day the buyer submits the funds in the
pool account
• The seller has to submit the securities
• This is known as pay in
• Transfer the funds and securities from buyer
to seller pool account and from seller to
buyer,this is known as settlement.

More Related Content

Similar to Rolling settlement in trading process

Share market operations
Share market operationsShare market operations
Share market operations
Jaya Vignesh
 
Investment Banking Operations - Trade life cycle.pptx
Investment Banking Operations - Trade life cycle.pptxInvestment Banking Operations - Trade life cycle.pptx
Investment Banking Operations - Trade life cycle.pptx
Sri Ramakrishna College of Arts and Science
 
Securities Trade Life Cycle
Securities Trade Life CycleSecurities Trade Life Cycle
Securities Trade Life Cycle
Khader Shaik
 
Trading ppt
Trading pptTrading ppt
Documentary collection letters of credit
Documentary collection  letters of creditDocumentary collection  letters of credit
Documentary collection letters of credit
jadayoub01
 
Agent Presentation | Owner Financing
Agent Presentation | Owner FinancingAgent Presentation | Owner Financing
Agent Presentation | Owner Financing
Robb Krautbauer
 
Clearing Corporation.pptx
Clearing Corporation.pptxClearing Corporation.pptx
Clearing Corporation.pptx
AnkurShukla901902
 
work shop on stock market.pptx
work shop on stock market.pptxwork shop on stock market.pptx
work shop on stock market.pptx
SoujanyaLk1
 
Day 2
Day   2Day   2
Day 2
alice2046
 
Capitalmarket5InvestmentActivities.pdf
Capitalmarket5InvestmentActivities.pdfCapitalmarket5InvestmentActivities.pdf
Capitalmarket5InvestmentActivities.pdf
NguynQunh638116
 
Methods of International Trade Settlement
Methods of International Trade SettlementMethods of International Trade Settlement
Methods of International Trade Settlement
Mohammed Jasir PV
 
Legal aspects of trade finance
Legal aspects of trade financeLegal aspects of trade finance
Legal aspects of trade finance
Kusum901
 
Future markets and contracts
Future markets and contractsFuture markets and contracts
Future markets and contracts
Amber Fatima
 
M&A What VCs Should Know
M&A What VCs Should KnowM&A What VCs Should Know
M&A What VCs Should Know
Roger Royse
 
Introduction to derivatives
Introduction to derivativesIntroduction to derivatives
Introduction to derivatives
Nilima Das
 
Payment modes
Payment modesPayment modes
Payment modes
luispachon
 
Real Estate Investor Buyers - Their Many Flavors
Real Estate Investor Buyers - Their Many FlavorsReal Estate Investor Buyers - Their Many Flavors
Real Estate Investor Buyers - Their Many Flavors
infoslidewwh
 
Bombaby stock exchange
Bombaby  stock exchangeBombaby  stock exchange
Bombaby stock exchange
Manohar Gupta
 
Irc1031 tax deferred exchange details
Irc1031 tax deferred exchange detailsIrc1031 tax deferred exchange details
Irc1031 tax deferred exchange details
shkmr
 
How to Structure a Business to Sell
How to Structure a Business to SellHow to Structure a Business to Sell
How to Structure a Business to Sell
Callister Nebeker & McCullough
 

Similar to Rolling settlement in trading process (20)

Share market operations
Share market operationsShare market operations
Share market operations
 
Investment Banking Operations - Trade life cycle.pptx
Investment Banking Operations - Trade life cycle.pptxInvestment Banking Operations - Trade life cycle.pptx
Investment Banking Operations - Trade life cycle.pptx
 
Securities Trade Life Cycle
Securities Trade Life CycleSecurities Trade Life Cycle
Securities Trade Life Cycle
 
Trading ppt
Trading pptTrading ppt
Trading ppt
 
Documentary collection letters of credit
Documentary collection  letters of creditDocumentary collection  letters of credit
Documentary collection letters of credit
 
Agent Presentation | Owner Financing
Agent Presentation | Owner FinancingAgent Presentation | Owner Financing
Agent Presentation | Owner Financing
 
Clearing Corporation.pptx
Clearing Corporation.pptxClearing Corporation.pptx
Clearing Corporation.pptx
 
work shop on stock market.pptx
work shop on stock market.pptxwork shop on stock market.pptx
work shop on stock market.pptx
 
Day 2
Day   2Day   2
Day 2
 
Capitalmarket5InvestmentActivities.pdf
Capitalmarket5InvestmentActivities.pdfCapitalmarket5InvestmentActivities.pdf
Capitalmarket5InvestmentActivities.pdf
 
Methods of International Trade Settlement
Methods of International Trade SettlementMethods of International Trade Settlement
Methods of International Trade Settlement
 
Legal aspects of trade finance
Legal aspects of trade financeLegal aspects of trade finance
Legal aspects of trade finance
 
Future markets and contracts
Future markets and contractsFuture markets and contracts
Future markets and contracts
 
M&A What VCs Should Know
M&A What VCs Should KnowM&A What VCs Should Know
M&A What VCs Should Know
 
Introduction to derivatives
Introduction to derivativesIntroduction to derivatives
Introduction to derivatives
 
Payment modes
Payment modesPayment modes
Payment modes
 
Real Estate Investor Buyers - Their Many Flavors
Real Estate Investor Buyers - Their Many FlavorsReal Estate Investor Buyers - Their Many Flavors
Real Estate Investor Buyers - Their Many Flavors
 
Bombaby stock exchange
Bombaby  stock exchangeBombaby  stock exchange
Bombaby stock exchange
 
Irc1031 tax deferred exchange details
Irc1031 tax deferred exchange detailsIrc1031 tax deferred exchange details
Irc1031 tax deferred exchange details
 
How to Structure a Business to Sell
How to Structure a Business to SellHow to Structure a Business to Sell
How to Structure a Business to Sell
 

More from Delhi Institute of Advanced Studies

Depositories ppt
Depositories pptDepositories ppt
Sebi final ppt class
Sebi final ppt classSebi final ppt class
Discharge of a contract
Discharge of a contractDischarge of a contract
Discharge of a contract
Delhi Institute of Advanced Studies
 
Free consent
Free consentFree consent
Conflict management & resolution
Conflict management & resolutionConflict management & resolution
Conflict management & resolution
Delhi Institute of Advanced Studies
 
Income under the head house property
Income under the head house propertyIncome under the head house property
Income under the head house property
Delhi Institute of Advanced Studies
 
Basic concepts
Basic conceptsBasic concepts

More from Delhi Institute of Advanced Studies (7)

Depositories ppt
Depositories pptDepositories ppt
Depositories ppt
 
Sebi final ppt class
Sebi final ppt classSebi final ppt class
Sebi final ppt class
 
Discharge of a contract
Discharge of a contractDischarge of a contract
Discharge of a contract
 
Free consent
Free consentFree consent
Free consent
 
Conflict management & resolution
Conflict management & resolutionConflict management & resolution
Conflict management & resolution
 
Income under the head house property
Income under the head house propertyIncome under the head house property
Income under the head house property
 
Basic concepts
Basic conceptsBasic concepts
Basic concepts
 

Recently uploaded

Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
National Information Standards Organization (NISO)
 
How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17
Celine George
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
Dr. Mulla Adam Ali
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
WaniBasim
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
TechSoup
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Nicholas Montgomery
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
TechSoup
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
Priyankaranawat4
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
History of Stoke Newington
 
Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
NgcHiNguyn25
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
Academy of Science of South Africa
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Nguyen Thanh Tu Collection
 
World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024
ak6969907
 
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold MethodHow to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
Celine George
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
Celine George
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
paigestewart1632
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Scholarhat
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
Colégio Santa Teresinha
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
chanes7
 

Recently uploaded (20)

Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
 
How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
 
Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
 
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
 
World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024
 
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold MethodHow to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
 

Rolling settlement in trading process

  • 1. ROLLING SETTLEMENT IN TRADING PROCESS BASED ON T DAY CONCEPT
  • 2. INTERMEDIARIES • SELLER AND BUYER entered in to contract through registered brokers/authorised persons of stock exchange. • This order would be placed in the stock exchange by the brokers on behalf of the seller and the buyer.
  • 3. Clearing houses of stock exchange • These orders in the stock exchange gets matched and it becomes a trade. • Price strike • The day is known as T day • Trade day
  • 4. Clearing houses • The stock exchange has strict rules and regulations and defaults on the part of issuing securities is managed by clearing houses. • NSE has NSCCL Trade would be executed by these clearing houses,they download the transactions related to money receivable/money payable and securities receiveable/securities payable.
  • 5. • These clearing houses informs the broker and which in turn intimate to the investors • T day= trade day • T+1=calculation day • T +2= settlement day
  • 6. • On t+2 day the buyer submits the funds in the pool account • The seller has to submit the securities • This is known as pay in • Transfer the funds and securities from buyer to seller pool account and from seller to buyer,this is known as settlement.