WHAT IS A ROLLING SETTLEMENT? | ரோலிங் செட்டில்மென்ட் என்றால் என்ன?

 

ROLLING SETTLEMENT:

What is a rolling settlement? well, it is a process of settling the shares which you buy/sell from your Demat account. Rolling settlement takes place on a T + 2-day basis, where T refers to a trading day.

Let me tell about this in detail,

Let us consider you purchase 20 shares of ITC worth ₹5000 on Monday.

List of events occurs after purchase till settlement:

On the T Day:

1. After the purchase is made, the amount of ₹5000 for the shares + Brokerage charges will be debited from your account on the same day (i.e. Monday, in this case). 
2. So, Monday is called the T day or Trade day.
3. But, shares of ITC won't arrive on your Demat account immediately. It will take a few days.

On the T + 1 Day:

1. The Next day after T day is called the T+1 day (i.e. Tuesday in this case).
2.  On this day, The Clearing corporation debits the shares from the Demat account of the seller and submits the shares to the stock exchange (NSE or BSE).
3. On the same day, the exchange collects the purchase amount for the 20 shares of ITC and other taxes from your stockbroker.

On the T + 2 Day:

1. The Next day after T + 1 Day is T + 2 Day (i.e. Wednesday in this case).
2. On this day, the stock exchange will deliver the shares that you purchased on the T day to your stockbroker's account.
3. By the end of the T + 2 Day, you will receive your 20 shares of ITC from your stockbroker to your Demat account.

The Important duty of the stock exchanges is to make sure the payout of funds or securities is done by the brokers within 24 hours of the payout from the exchange. This process of settlement is known as Rolling settlement.

NEW FACT:

The T + 2 Day settlement system was introduced by SEBI in April 2003. Before that, the stock market followed T + 3 Day settlement system. Now, with the growing technology and high volume transfer of shares, SEBI has decided to fasten the process of settlement. Thus, since February 25, 2022, the T + 1 settlement system is being followed for specific stocks, soon it will gradually apply to all the stocks in the market. The system has been brought in despite reservations expressed by foreign investors.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.