ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -On the T+2 day of the trade, the exchange will deliver the share or make payment to the other broker. This is called the pay-out day.

Detailed explanation-2: -Pay out day is the day when the exchange makes payment or delivery of securities to the broker.

Detailed explanation-3: -Ans : The main steps involved in the trading procedure are selecting a broker, opening a Demat account, placing an order for a transaction, executing the transaction by the broker, and finally, the settlement of the transfer between buyers and sellers.

Detailed explanation-4: -Investor has to deliver the shares sold or pay cash for the shares bought before the day when the broker shall make payment or delivery of shares to stock exchange. This is called pay in day. On T+2 day the exchange will deliver the share or make payment to other broker. This is called as pay out day.

Detailed explanation-5: -When you want to sell shares through a broker, they are picked up from your Demat account and transferred to the broker’s account. The day they are delivered to the exchange is known as pay-in day. Since 1st April 2003, in India, pay-ins happen on the next working day following the trading day, within 24 hours.