In the National Stock Exchange NSE cash market, the standard weekly accounting or settlement period cycle runs from which day to which day?

Difficulty: Easy

Correct Answer: Wednesday to next Tuesday

Explanation:


Introduction / Context:
Stock exchanges follow a defined settlement cycle or accounting period that determines when trades are netted and settled. This question relates to the standard weekly accounting period that was widely used in the National Stock Exchange NSE cash market. Such questions test knowledge of basic market structure and settlement mechanisms, which is important for candidates preparing for capital market, finance, or brokerage related roles.



Given Data / Assumptions:

  • The question mentions the accounting period cycle of NSE.
  • The options list four possible start and end day combinations over a one week period.
  • We assume the traditional weekly settlement pattern as tested in many competitive exams.
  • The focus is on the concept of a fixed weekly settlement window.



Concept / Approach:
To manage risk and operational efficiency, stock exchanges historically used weekly settlement cycles, where trades in a given period were accumulated and then settled together. In NSE practice, a commonly tested fact is that the accounting or settlement period runs from Wednesday to the next Tuesday. All trades executed during this period are accounted for in one settlement. While rolling settlement has now become the norm, exam questions often refer to this classical cycle, so the correct answer is the option that exactly matches Wednesday to next Tuesday.



Step-by-Step Solution:
Step 1: Recall the classical settlement convention for NSE as used in many exam oriented materials.Step 2: Identify that the weekly cycle started mid week to balance trading volumes and operational work, which points to Wednesday.Step 3: Note that a one week window from Wednesday ends on the following Tuesday.Step 4: Compare the given options and locate the pair that reads Wednesday to next Tuesday.Step 5: Select option B Wednesday to next Tuesday as the correct answer.



Verification / Alternative check:
You can cross check by thinking about how settlement batches are labelled in many traditional descriptions of NSE settlement. The settlement number is often associated with trades executed from Wednesday to the next Tuesday. Trades within that period are clubbed together for pay in and pay out obligations on a common settlement date. This aligns with option B and does not match the other day combinations listed in the options.



Why Other Options Are Wrong:
Option A Monday to next Friday represents a normal working week but does not match the historical NSE accounting cycle as presented in standard exam material. Option C Wednesday to next Wednesday covers eight days, which does not fit a weekly cycle. Option D Tuesday to next Wednesday covers nine days and would also create an uneven settlement pattern. Therefore only option B correctly captures the traditional NSE weekly accounting period.



Common Pitfalls:
Candidates often assume that any weekly period must run from Monday to Friday or Monday to Monday and choose the most familiar working week pattern. Another pitfall is not noticing the word next in the options and miscounting the days. To avoid such mistakes, read the options carefully and rely on specific capital market knowledge rather than intuition about the calendar. For exam purposes, remembering Wednesday to next Tuesday as the NSE weekly accounting cycle is useful.



Final Answer:
The accounting period cycle of the National Stock Exchange NSE runs from Wednesday to the next Tuesday.

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