T+0 settlement beta version from next week, Sebi issues guidelines

The new framework will come into force from March 28

The Securities and Exchange Board of India (Sebi) on Thursday issued guidelines for introducing the beta version of same-day (T+0) settlement on an optional basis. The new framework will become operational by March 28. This will be in addition to the existing T+1 settlement cycle in the equity cash market.

The option will be available for trades done only till 1.30 pm.

"It has been decided to put in place a framework for the introduction of the Beta version of the T+0  settlement cycle on an optional basis in addition to the existing T+1 settlement cycle in the equity cash market, for a limited set of 25 scrips and with a limited number of brokers," a Sebi circular said.

The markets regulator said the shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors, and strengthen risk management at clearing corporations, and the overall securities market ecosystem.

Sebi has asked market infrastructure institutions (MIIs) to put in place additional operational guidelines like the mechanism for trading, clearing and settlement and risk management. They will also be issuing Frequently Asked Questions (FAQs). The regulator said it will continue to do further stakeholder consultation including with users of the Beta version of the T+0 settlement cycle.