SEBI introduces Beta version of T+0 rolling settlement cycle on optional basis

The Securities and Exchange Board of India or SEBI has stated that it has been decided to put in place a framework for introduction of the Beta version of T+0 settlement cycle on optional basis in addition to the existing T+1 settlement cycle in equity cash market, for a limited set of 25 scrips and with a limited number of brokers.

SEBI had earlier allowed for introduction of T+1 rolling settlement cycle. 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.

The significant evolution of technology, architecture and capacity of Market Infrastructure Institutions or MIIs, presents opportunities for further advancing clearing and settlement timelines. Further, India's depository ecosystem has visibility of individual client level holdings in digital form, and so has the ability to effect immediate transfer of securities and also India's payments and settlements ecosystem has long allowed for real time transfer of funds.

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