Settlement Cycle
The important settlement types are as follows:
- Normal segment (M)
- Trade for trade Surveillance (Z)
- Auction normal (A)
- ITP for SME Series (B)
- T+0 settlement (5)
NSE Clearing follows a T+1/ T+0 rolling settlement cycle. For all trades executed on the T day, NSE Clearing determines the provisional cumulative obligations of each member on the T day and electronically transfers the data to Clearing Members (CMs). All trades concluded during a particular trading date are settled on a designated settlement day i.e. T+1/ T+0 day. In case of short deliveries on the T+1 day in the normal segment, NSE Clearing conducts a buy –in auction on the T+1 day itself and the settlement for the same is completed on the T+2 day, whereas in case of Z/5 settlement type there is a direct close out. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. The settlement schedule for all the settlement types in the manner explained above is communicated to the market participants vide circular issued during the previous month.
Rolling Settlement
In a T+1 rolling settlement, for all trades executed on trading day .i.e. T day the provisional obligations are determined on the T day, final obligations is generated by 8:30 am on T+1 and settlement on T+1 basis i.e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. A tabular representation of the settlement cycle for rolling settlement is given below:
| Activity | Day | |
|---|---|---|
| Trading | Rolling Settlement Trading | T |
| Clearing | Custodial Confirmation | T+1 working days |
| Delivery Generation | T+1 working days | |
| Settlement | Securities and Funds pay in | T+1 working days |
| Securities and Funds pay out | T+1 working days | |
| Valuation Debit | T+1 working days | |
| Post Settlement | Auction | T+1 working days |
| Auction settlement | T+2 working days |
T+0 Rolling Settlement
In a T+0 rolling settlement, trades are executed on trading day till 1:30 pm. The obligations are determined on the T day by 2:30 pm and settlement is completed thereafter.
For non-custodial transactions pay-in for T+0 sell obligations shall be allowed only by way of early pay-in using block mechanism by 1:45 pm. For confirmed custodial transactions NCL shall upload auto delivery out instructions for the net deliverable obligations in custodian pool account. For non-confirmed/ rejected custodial transactions, NCL shall provide Auto-Do instructions for incremental security delivery obligation in member pool account. The cut-off for executing the securities pay-in at depositories end is 3:30 pm. Payout instructions are generated subsequent to pay-in and released to depositories on the same day i.e. T day.
Any shortage in securities early pay-in is directly closed out.
No trading is done in T+0 securities in case of settlement/bank holiday.
Updated on: 21/03/2025
