Four months too short, push T+1 deadline by 18 mths, global funds tell Sebi

They says optional T+1 settlement on scrip-by-scrip basis will bring needless operational complexity and risk in settlement system

A global association for regulated funds that is leading efforts to shorten the settlement cycle for US equities has reached out to the Securities and Exchange Board of India (Sebi) with a plea to extend the T+1 implementation timeline by 18 months.

The short transition period of four months does not provide foreign portfolio investors (FPIs), their services providers, and broker dealers sufficient time to make the necessary operational and compliance changes to accommodate a shorter settlement cycle, ICI Global said in its letter addressed to Sebi chairman Ajay Tyagi written a few days back.

ICI Global carries out the