T+0 Settlement : As per SEBI guidelines, Bombay Stock Exchange (BSE) has announced the launch of a beta version of T+0 settlement. BSE said in a notice on Friday that it will launch the beta version of T+0 settlement next week on Thursday, March 28, 2024. BSE said that after the launch of the beta version of T+0 settlement, all charges/fees like transaction charges, STT and regulatory/turnover fees which are applicable for T+1 settled security will be applicable for T+0 settled security. Will also apply.
What did BSE say in the notice?
BSE issued a notice saying, “Trading members are requested to refer to SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated March 21, 2024 for the current T+1 in Equity Cash Market. See Introduction of Beta Version of T+0 Rolling Settlement Cycle on Optional Basis in addition to the Settlement Cycle. Trading Members are requested to note that the Exchange will commence trading in securities under the T+0 Settlement Mechanism with effect from Thursday, March 28, 2024. will start.” However, T+0 prices will not be considered in the index calculation. T+0 cycle means same day settlement.
What is T+0 settlement?
Stock exchanges in the Indian stock market currently follow T+1 settlement. Under this, funds and securities are credited to the investor’s account within 24 hours of the order execution. Now T+0 settlement cycle will launch from March 28. All investors can participate in this. Trading in the T+0 settlement cycle will take place from 9:15 am to 1:30 pm. Under this settlement, same-day settlement will be implemented in the first phase. After this, the share buyer will be allotted the share on the same day and the share seller will get the money on the same day.
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