T+0 Settlement: The Market regulator SEBI, based on the recommendations of Working group (Consists of Market Infrastructure Institutions, public comments and Risk Management Review Committee) introduced awaited Beta version of T+0 rolling settlements cycle on optional basis in Equity Cash Markets from March 28, 2024.
This move will bring advantages of same day receipt of funds and securities to the investor. For example – If you buy or sell stocks, the shares or money will be in your account on the same day.
Benefits of T+0 Rolling Settlement Cycle
The implementation of T+0 rolling settlements represents a notable development in enhancing the investor experience and streamlining market processes.
- It will bring cost and time efficiency
- Transparency in charges to investors
- Strengthen risk management at clearing corporations and the overall securities market ecosystem
- It will enhance liquidity
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Transition of Settlement Cycle in Indian Securities Market
As per SEBI Circular dated 30 January 2002,
Shorten the rolling settlement cycle from T+5 to T+3 w.e.f. 01 April 2002.
As per SEBI Circular dated 06 February 2003,
Further shorten the rolling settlement cycle from T+3 to T+2 w.e.f. 01 April 2003.
As per SEBI Circular dated 07 September 2021,
- Introduced T+1 rolling settlement on optional basis along with existing settlement cycle w.e.f. 01 January 2022.
- However, all stock exchanges, clearing corporations and depositories (collectively referred to as “Market Infrastructure Institutions (MIIs)”) jointly decided to shift to T+1 settlement cycle in a phased manner, which was fully implemented w.e.f. January 27, 2023.
As per SEBI circular dated 21 March 2024,
Introduced Beta version of T+0 settlement cycle on optional basis in addition to existing T+1 settlement cycle in equity cash market for 25 scrips and with a limited number of brokers w.e.f. 28 March 2024.
Earlier i.e. Before 1992, the Settlement Cycle was T+14. After Harshad Mehta Scam, it reduced to T+7 then in December 2001, the T+5 Settlement cycle was introduced.
The list of securities shortlisted for T+0 Settlement by Exchanges (BSE/NSE)
Sr. No. | Symbol | Name of Company |
1 | AMBUJACEM | Ambuja Cements Limited |
2 | ASHOKLEY | Ashok Leyland Limited |
3 | BAJAJ-AUTO | Bajaj Auto Limited |
4 | BANKBARODA | Bank of Baroda |
5 | BPCL | Bharat Petroleum Corporation Limited |
6 | BSOFT | Birlasoft Limited |
7 | CIPLA | Cipla Limited |
8 | COFORGE | Coforge Limited |
9 | DIVISLAB | Divi’S Laboratories Limited |
10 | HINDALCO | Hindalco Industries Limited |
11 | INDHOTEL | The Indian Hotels Company Limited |
12 | JSWSTEEL | Jsw Steel Limited |
13 | LICHSGFIN | Lic Housing Finance Limited |
14 | LTIM | Ltimindtree Limited |
15 | MOTHERSON | Samvardhana Motherson International Limited |
16 | MRF | Mrf Limited |
17 | NESTLEIND | Nestle India Limited |
18 | NMDC | Nmdc Limited |
19 | ONGC | Oil & Natural Gas Corporation Limited |
20 | PETRONET | Petronet Lng Limited |
21 | SBIN | State Bank of India |
22 | TATACOMM | Tata Communications Limited |
23 | TRENT | Trent Limited |
24 | UNIONBANK | Union Bank of India |
25 | VEDL | Vedanta Limited |
Overall, India’s financial development has benefited greatly from SEBI’s attempts to control trade settlement cycles.
***Get in touch with your respective Brokers/Members for more details.
Enclosed: SEBI’s Circular
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