In December final 12 months, Sebi had launched an optionally available T+0 (same-day) settlement cycle along with the present T+1 cycle, as a part of its broader push in direction of quicker commerce settlements.
Underneath the framework, solely brokers categorised as certified inventory brokers — primarily based on sure parameters like a minimal variety of energetic shoppers — have been required to place methods in place to supply buyers the selection of T+0 settlement.
Nonetheless, after receiving suggestions from brokers and holding discussions with inventory exchanges, clearing companies, depositories, and different market infrastructure establishments (MIIs), Sebi determined to increase the implementation timeline.
“Based mostly on the suggestions acquired from QSBs; subsequent discussions with Inventory Exchanges, Clearing Firms, Depositories and QSBs; and as a way to guarantee easy implementation of the identical, it has been determined to increase the timeline for QSBs for putting in the mandatory methods and processes for enabling seamless participation of buyers in optionally available T+0 settlement cycle, to November 01, 2025,” Sebi stated in a round.
The regulator stated the extension would permit for smoother transition and higher preparedness throughout the ecosystem.Whereas the implementation date has shifted, all different provisions of the December 2024 round stay unchanged. Sebi has additionally directed all market establishments to take essential steps, amend bylaws and laws if wanted, and inform market contributors concerning the new timeline by means of their web sites.T+0 settlement is predicted to reinforce market effectivity by lowering settlement dangers and liberating up investor capital extra shortly.
India has already transitioned from T+2 to T+1 settlement for all listed shares over the previous 12 months, making it among the many quickest settlement markets globally.
Analysts consider that whereas the transfer in direction of T+0 settlement is optimistic for market effectivity, operational readiness — particularly amongst smaller contributors — stays a important problem.
