Finance ministry dials Sebi on T+1, discusses peak margin implications

Sebi is learnt to have assured the ministry that the peak margin norms and other tightening measures are aimed at reducing risk

The Union finance ministry has asked the Securities and Exchange Board of India (Sebi) if the stock markets are prepared for the shorter trade settlement cycle (T+1) and whether this will lead to any sell-off or pruning of exposures by overseas investors, said two people in the know.

The move follows concern raised by foreign portfolio investors (FPIs). Sources said FPI lobbies had written to Sebi as well as the ministry, highlighting their worries on the shift to T+1 from the current cycle of T+2 (the settlement takes place two days after trading day).

Besides this, the ministry discussed with the markets