Markets regulator Securities and Exchange Board of India (SEBI) will begin the T+0 trade settlement cycle on an optional basis by March 28, chair Madhabi Puri Buch said.
Speaking on the sidelines of an AMFI event felicitating women fund managers on Monday, Buch also said that the instant settlement cycle will be done by March 2025, CNBC-TV18 reported. The move towards faster settlements is due to the rise of alternates like cryptocurrency, the report added: “We want to ensure our regulated market is competitive and offers the same advantages to investors,” Buch said.
A T+0 settlement would mean trades will settled on the same day, while instant settlement would ensure that the settlement of securities and funds happens immediately. The Indian stock market follows the T+1 (trade plus one day) settlement cycle for all scrips at present.
In the first phase, an optional T+0 settlement cycle for trades till 1:30 pm is envisaged, with the settlement of funds and securities to be completed on the same day by 4:30 pm. In the second phase, an optional immediate trade-by-trade settlement will be carried out for trades till 3.30 pm.