Settlement Cycle

The important settlement types are as follows:

1. Normal segment (M)
2. Trade for trade Surveillance  (Z)
3. Auction normal (A)
4. ITP for SME Series (B)
5. 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.