Stock markets to roll out same-day settlement today

Stock exchanges NSE and BSE will introduce the same day or T+0 trade settlement cycle for trades executed in the equity market segment from Thursday (March 28) as earlier decided by the securities and exchange board of India (Sebi) for the first set of 25 securities with a limited number of brokers.

BSE, NSE have released a joint list of 25 stocks to be included in the T+0 settlement cycle. The shortened settlement cycle in the select 25 stocks will be applicable for trades executed between 9.15 am to 1.30 pm.

Earlier trade settlement cycle was brought down in a phased manner from two days (T+2) after trade execution to one day (T+1) after trade execution from 2021 onwards and was fully implemented with effect from Jan. 27, 2023.

“All investors are eligible to participate in the segment for the T+0 settlement cycle during the trading period starting from 9.15 am to 1.30 pm,” as per the Sebi circular.

In the current T+1 system, sellers of equity shares can only access 80 per cent of their funds on the sell day while waiting until the next day to receive the remaining 20 per cent. However, with the new T+0 settlement system, sellers will have access to 100 per cent of their funds on the same day of trade, said brokers.

“Through this initiative, we believe our settlement

BSE, NSE have released a joint list of 25 stocks to be included in the T+0 settlement cycle. The shortened settlement cycle in the select 25 stocks will be applicable for trades.

● systems will be on par with and even surpass those of many developed nations. As a result, the Indian stock market will be recognised as innovative, and progressive on global stage,” said Samir Shah, head – Online Business, Axis Securities.

“This development will increase liquidity for investors, allowing them to quickly enter into other trades without losing out on investment opportunities due to waiting periods,” Shah said.

BSE and NSE have released a list of 25 securities, which include equity shares of Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, BPCL, Birlasoft, Cipla, Coforge, Divis Laboratory, Hindalco Industries, Indian Hotels, JSW Steel, LIC Housing Finance, Ltimindtree, MRF, Nestle India, NMDC, ONGC, Petronet LNG, Samvardhana Motherson International, SBI, Tata Communications, Trent, UBI and Vedanta.