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A regular way purchase or sale of a financial asset under Ind AS 109 is:
AAny purchase/sale of a financial asset on a recognised stock exchange
BA purchase/sale settled within a maximum of two business days
CA purchase/sale where the buyer and seller are both regulated financial institutions
DA purchase/sale under a contract requiring delivery within the time frame established by regulation or convention in the marketplace
Answer & Solution
Correct answer: D. A purchase/sale under a contract requiring delivery within the time frame established by regulation or convention in the marketplace
The definition rests on MARKET CONVENTION — settlement within the regulator/exchange-established standard (e.g., T+2 on BSE/NSE for equity). A trade that deviates from the convention is NOT regular way and is treated as a derivative between trade and settlement date. The exchange/regulated-counterparty/2-day fixed test are not the criteria.
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