The Securities and Exchange Board of India (Sebi) on Thursday issued guidelines for same-day (T+0) settlement, the beta version of which will become operational by March 28.
In the initial phase, the facility will be provided by a limited number of brokers and select stocks. The option will be available for trades done only till 1.30 pm.
“It has been decided to put in place a framework for the introduction of the Beta version of T+0 settlement cycle on an optional basis in addition to the existing T+1 settlement cycle in the equity cash market, for a limited set of 25 scrips and with a limited number of brokers,” a Sebi circular stated.
The regulator said the shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors, and strengthen risk management at clearing corporations and the overall securities market ecosystem.
At present, the market works with a T+1 settlement cycle.
Sebi has asked market infrastructure institutions (MIIs) to put in place additional operational guidelines like the mechanism for trading, clearing and settlement, and risk management. They will also be issuing Frequently Asked Questions (FAQs).
Sebi said it will continue to do further stakeholder consultation, including with users of the Beta version of the T+0 settlement cycle.
First Published: Mar 21 2024 | 6:22 PM IST