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SEBI has introduced a T + 1 settlement period for stocks from February 25, 2022, making India the second country to implement this mechanism. Which was the first country to do so?
A)
China
B)
Australia
C)
United States
D)
United Kingdom

Correct Answer :   China


From February 25, 2022 India will become second country after China to move to the T+1 stock settlement mechanism in a phased manner.
 
What Is The New T+1 Stock Settlement Mechanism?  
Under this new mechanism, the buyer and seller of shares will get their shares and money, respectively, within 24 hours. The T+1 stock settlement mechanism will make the existing share purchase and its sale process much faster and more convenient for all stakeholders. ‘T’ in T+1 represents the ‘Trade’ day and ‘+1’ means a day extra.

Suppose, you place an order to buy shares on Monday(21st Feb 2022) then by Tuesday(22nd Feb 2022) evening the shares will get credited to your Demat account. From Wednesday(23rd Feb 2022) morning you can trade using the shares bought..

Source : Outlook India

Published On : February 27, 2022
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