Concerns loom as regulator bites the bullet on T+1 settlement cycle

Smooth implementation will require coordinated efforts from rival market infrastructure institutions

Market participants believe that the move to a shorter T+1 settlement cycle from 2022 will not be easy and require a coordinated effort among exchanges, depositories, and clearing corporations.
 
Two different settlement cycles on different exchanges for the same scrip can cause liquidity to fragment, which may hamper price discovery and lead to other inefficiencies.
 
“One cannot particularly foresee the exchanges going gung-ho over implementing this pruned settlement process, as this will require planning, coordination, pre-emption, and management of various technical and procedural aspects, generally, which will also involve alignment with various stakeholders. This will also require parity