settlement cycle

What is the significance of the "pay-in" and "pay-out" days in the settlement cycle?

• Pay-in day is when buyers receive securities, and pay-out day is when sellers receive funds.

• Pay-in day is when buyers deliver funds, and pay-out day is when sellers deliver securities.

• Both pay-in and pay-out occur on the same day.

• Pay-in day is when trade confirmations are issued, and pay-out day is when trade execution occurs.

In the context of the Indian stock market, what does T+2 settlement mean?

• Transactions settled two weeks after the trade date

• Transactions settled on the trade date.

• Transactions settled two days after the trade date

• Transactions settled two months after the trade date.

What is the role of the Depository in the settlement cycle?

• Executing stock trades on behalf of investors

• Holding and maintaining electronic records of securities ownership.

• Regulating the stock market

• Managing interest rates.

What is the main purpose of the settlement cycle in the stock market?

• To ensure that securities and funds are exchanged between buyers and sellers after a trade is executed.

• To determine the opening and closing times of the stock exchange.

• To regulate the trading of commodities

• To set the maximum limit on stock prices.

Which of the following financial instruments is commonly used in investment banking to raise capital for corporations?

• Savings accounts

• Government bonds

• Corporate bonds

• Student loans

What is the term for the process of combining two or more companies to form a larger entity?

• Diversification

• Merger

• Acquisition

• Liquidation

Which organization is responsible for the clearing and settlement of trades in the Indian stock market?

• Reserve Bank of India (RBI)

• National Stock Exchange (NSE)

• National Securities Clearing Corporation Limited (NSCCL)

• Securities and Exchange Board of India (SEBI)

Which of the following is a key entity involved in the clearing and settlement process in the Indian stock market?

• Central Board of Direct Taxes (CBDT)

• Central Depository Services Limited (CDSL)

• Central Pollution Control Board (CPCB)

• Central Bureau of Investigation (CBI)

Which of the following is NOT a part of the settlement process in the Indian stock market?

• Transfer of funds between buyer and seller.

• Transfer of securities between buyer and seller.

• Calculation of brokerage fees.

• Confirmation of trade details.

Which market segment in the Indian stock market typically has a shorter settlement cycle compared to the equity segment?

• Derivatives

• Debt

• Commodities

• Mutual Funds