SEBI Set To Launch Beta Version Of T+0 Trade Settlement On March 28

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New Delhi: The Securities and Exchange Board of India (SEBI) will introduce the beta framework for the T+0 settlement cycle starting March 28. This initiative involves a continuous session scheduled from 9:15 a.m. to 1:30 p.m. 

T+0 settlement refers to the procedure of settling trades on the very same day ensuring that sellers receive payment for stocks immediately after the sale, in contrast to T+1 settlement where payment is received on the following day. ()

“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,” According to a circular from SEBI. ()

Currently, the market operates on a T+1 settlement cycle. SEBI has requested market infrastructure institutions (MIIs) to establish extra operational guidelines regarding trading mechanisms, clearing and settlement processes, and risk management. Further, they will be releasing a set of Frequently Asked Questions (FAQs).

 T+0 prices won't be taken into account in index calculation and determining settlement prices. Moreover, there won't be a distinct closing price for securities derived from T+0 segment trading.

Furthermore, there will be no offsetting of obligations between the T+1 and T+0 settlement cycles. This action by SEBI is intended to simplify and accelerate the settlement procedure, offering more flexibility and effectiveness for those involved in the market.