Final answer:
Regulation T allows for a payment extension request on the settlement date for securities transactions if the funds are not available, subject to the approval of a self-regulatory organization.
Step-by-step explanation:
Under Regulation T, an extension for payment may be requested on the settlement date if a purchaser, typically of securities, does not have sufficient funds to cover the transaction. This is a provision within the Federal Reserve Board's Regulation T that governs the extension of credit by brokers and dealers to customers for the purchase of securities. When requesting an extension, the broker-dealer would need to submit a request to a self-regulatory organization (such as FINRA) for an extension of the time to pay for the securities purchased. If granted, the extension provides additional time beyond the standard three-day settlement period, known as T+3, to make the required payment. It is important to note that obtaining such an extension is not guaranteed and is typically subject to approval based on specific criteria outlined by the regulatory authority.