The stock exchange is all set to introduce the beta version of ‘T+0’ or same day trade settlement in select stocks in the cash segment from Thursday, March 28. The exchanges will initially launch shorter trade cycles for 25 stocks and with a limited number of brokers. Capital markets regulator SEBI will review the progress at the end of three months and six months and decide on further action. This will be in addition to the existing T+1 settlement cycle in the equity cash market. For starters, the T+0 trade settlement option will be available for a limited set of 25 stocks and a limited number of brokers, PTI reported.
T+0 also covers transaction risks
According to the news, T+0 means same-day settlement and the move will bring cost and time efficiency for investors, transparency in fees and strengthen risk management across the clearing corporation and the overall securities market ecosystem. The transition to T+0 not only enhances the efficiency and flexibility of market operations, but also significantly reduces transaction risks, providing immediate and tangible value to both traders and investors.
These are 25 stocks
Ambuja Cements Limited
Ashok Leyland Limited
Bajaj Auto Limited
Bank of Baroda
Bharat Petroleum Corporation Limited
Birlasoft Limited
Cipla Limited
Coforge Limited
Divis Laboratories Ltd
Hindalco Industries Limited
Indian Hotels Company Limited
JSW Steel Limited
LIC Housing Finance Limited
LTI Mindtree Limited
MRF Limited
Nestle India Limited
NMDC Limited
Oil and Natural Gas Corporation
Petronet LNG Limited
Samvardhan Motherson International Limited
state Bank of India
Tata Communications Limited
Trent Limited
Union Bank of India
Vedanta Limited
An outline was prepared last week
Following the deliberations and approval of SEBI’s board, the regulator last week prepared a framework for the introduction of the beta version of the T+0 settlement cycle on an optional basis from March 28. SEBI, in an effort to keep pace with the changing times and fulfill its mandate of development of securities markets and investor protection, shortened the settlement cycle from T+5 in 2002 to T+3 and subsequently to T+2 in 2003. Gave. Under the new framework, all investors will be eligible to participate in the T+0 settlement cycle if they are able to meet the timelines, process and risk requirements set by the market infrastructure institutions.
The monitoring measures applicable in T+1 settlement cycle will be applicable to shares in T+0 settlement cycle. T+0 prices will not be considered in index calculation and settlement price calculation. There will be no separate closing price for securities based on trading in the T+0 segment. Market regulator Sebi said T0 settlement will be optional for 25 stocks and will be applicable only for trades executed between 9:15 am and 1:30 pm.
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