Explain briefly 'Rolling settlement'.

Rolling settlement is the process of netting of transactions and actual delivery/receipts of securities and transfer deeds against receipts and payments of the agreed amount. In this system of rolling settlement, each day is considered as a trading day period and trades are executed during the day and are settled on the basis of net obligations for the day. In India, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day after a trade.