In December last year, Sebi presented an alternative T +0 (equal day) settlement cycle in addition to the existing T +1 cycle, as part of its widespread pressure towards fast trade settlements.
Under framework, brokers classified only as qualified stock brokers – based on some parameters like at least active customers – investors needed to place systems to provide a selection of T +0 settlement.
However, after receiving feedback from brokers and held discussions with stock exchanges, clearing corporations, deposits and other market infrastructure organizations (MIIS), SEBI decided to expand the implementation timeline.
“Based on the response received from the QSBS; the subsequent discussions with stock exchanges, clearing corporations, deposits and QSB; and to ensure the same simple implementation, CEB 01, November 01, CEB, CEB, CEB, to enable seamless partnerships to be enabled.
The regulator said that the extension would allow smooth transitions and better preparedness to the ecosystem.
While the date of implementation has changed, all other provisions of the circular on December 2024 remain unchanged. SEBI has also directed all market bodies to take necessary steps, improve bylaw and rules if necessary, and inform market participants about new timelines through their websites.
It is expected to increase market efficiency by reducing the risks of T +0 settlement settlement and releasing investors’ capital faster.
India has already been compromised for all listed stocks in the past year, making it the fastest settlement markets globally.
Analysts believe that while moving toward T +0 settlement is positive for market efficiency, operational readiness – especially in small participants – is a crucial challenge.
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