{"id":14325,"date":"2023-09-06T12:29:07","date_gmt":"2023-09-06T06:59:07","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=14325"},"modified":"2025-04-02T19:48:43","modified_gmt":"2025-04-02T14:18:43","slug":"one-hour-trade-settlement","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/one-hour-trade-settlement\/","title":{"rendered":"One-hour trade settlement"},"content":{"rendered":"<h2><strong>About one-hour trade settlement:<\/strong><\/h2>\n<ul>\n<li>In a one-hour settlement,\u00a0<strong>if an investor sells a share<\/strong>, the\u00a0<strong>money will be credited<\/strong> to their\u00a0<strong>account in an hour<\/strong>, and the buyer will get the shares in their demat account within an hour.<\/li>\n<li><strong>What is trade settlement?<\/strong>\n<ul>\n<li>Settlement is a\u00a0<strong>two-way process<\/strong> which involves the transfer of funds and securities on the settlement date.<\/li>\n<li>A trade settlement is said to be complete once purchased securities of a listed company are\u00a0<strong>delivered to the buyer and the seller gets the money<\/strong>.<\/li>\n<li>The\u00a0<strong>current cycle of T+1<\/strong> means trade-related settlements happen within a day, or 24 hours of the actual transactions.<\/li>\n<\/ul>\n<\/li>\n<li>The migration to the T+1 cycle came\u00a0<strong>into effect in January 2023<\/strong>.<\/li>\n<li>India became the second country in the world to start the T+1 settlement cycle in top-listed securities after China.<\/li>\n<\/ul>\n<h3>\u00a0<\/h3>\n<h3>What is a Demat Account?<\/h3>\n<ul>\n<li>A Demat Account or\u00a0<strong>Dematerialised Account provides<\/strong> the facility of\u00a0<strong>holding shares and securities in an electronic format.<\/strong><\/li>\n<li>During online trading, shares are bought and held in a Demat Account, thus, facilitating easy trade for the users.<\/li>\n<li>It holds all the\u00a0<strong>investments an individual makes in shares, government securities<\/strong>, exchange-traded funds, bonds and mutual funds in one place.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What are Exchange-Traded Funds?<\/h3>\n<p>Exchange-Traded Funds (ETFs) are investment funds and exchange-traded products that are designed to track the performance of a particular index, commodity, bonds, or a basket of assets like stocks. ETFs are traded on stock exchanges, just like individual stocks, and they provide investors with a way to gain exposure to a diversified portfolio.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/everyday-explainers\/sebi-one-hour-trade-settlement-8926148\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>What is one-hour trade settlement, which SEBI is planning to launch by March next year<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One-hour trade settlement  if an investor sells a share, the money will be credited to their account in an hour, and the buyer will get the shares in their demat account within an hour.<\/p>\n","protected":false},"author":5,"featured_media":14326,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-14325","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/14325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=14325"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/14325\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/14326"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=14325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=14325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=14325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}