World's fastest T+0 stock settlement kicks off in India, these stocks are eligible: What you need to know - Hindustan Times
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World's fastest T+0 stock settlement kicks off in India, these stocks are eligible: What you need to know

Mar 28, 2024 08:07 AM IST

T+0 stock settlement: Markets regulator Sebi has now put in place a framework to introduce the beta version of the T+0 trade settlement cycle.

T+0 stock settlement: The Bombay Stock Exchange (BSE) released a list of 25 stocks that will be eligible for T+0 settlement cycle from today (March 28). Stocks that are eligible for the settlement cycle include Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, BPCL, Cipla, three Tata Group stocks, among others.

T+0 stock settlement: People look at a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)
T+0 stock settlement: People look at a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

What changes owing to T+0 settlement?

Read more: T+0 cycle: These 25 stocks will be eligible for same-day settlement cycle. What changes and what it means?

Currently, Indian markets operate on a T+1 settlement cycle for all stocks under which purchase and sale of shares reflects in the demat accounts of investors one day after the transaction. But markets regulator Sebi has now put in place a framework to introduce the beta version of the T+0 trade settlement cycle. This will be on an optional basis and will be available for a limited set of 25 scrips and with a limited number of brokers.

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Will T+1 settlement end?

No. T+0 settlement cycle will be available in addition to the existing T+1 settlement cycle in the equity cash market.

What has Sebi said on the changes?

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Sebi said that a shorter settlement cycle will bring cost and time efficiency and also help investors with transparency and strengthen risk management. Earlier Sebi shortened the settlement cycle to T+3 from T+5 in 2002 and to T+2 in 2003.

Who will be eligible for T+0 settlement cycle?

Sebi said that all investors will be eligible to participate in the T+0 settlement cycle if they are able to meet the timelines, process and risk requirements. Trade timing will be between 9.15 am and 1.30 pm and the price in the T+0 segment will operate with a price band of +100 basis points from the price in the regular T+1 market. Although, T+0 prices will not be considered in index calculation and settlement price computation.

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