Updated on March 8, 2023
Rolling settlement refers to the normal method of settling trades in the stock exchanges. It refers to a system where securities traded on the current date are settled on successive dates. India follows a Trade+2 or T+2 settlement cycle. This means that securities bought today will be settled or will appear in the client’s demat account after two days (T+2). Similarly, securities which were traded yesterday will be credited in the client account one day before those traded today and so on.
Rolling Settlement explained
Rolling settlement of T+2 in India essentially means that securities exchanged on Monday will get settled on Wednesday and those traded on Tuesday will get settled on Thursday. Securities transacted on Thursday will get processed on Monday, which is the next working day (Saturdays & Sundays being the weekly holidays)
Few years ago, Indian stock exchanges used the T+3 settlement system, which has now been replaced by the T+2 system. Prior to the T+3 settlement system, NSE followed the weekly settlement system, where all trades were processed every Thursday.