Overseas investors' concerns remain as shift to T+1 settlement cycle nears

Issues around on trade confirmation day, forex booking, pre-funding yet to be fully settled

Overseas investors, as well as other key stakeholders, such as brokers, custodians, and clearing corporations, are yet to iron out critical issues, even as the shift towards a shorter trade settlement cycle approaches new phases.

Several industry players said foreign portfolio investors (FPIs) are still facing impediments over the trade confirmation timelines, foreign exchange (forex) bookings, and pre-funding requirements. This could potentially act as a roadblock when it comes to moving entirely to the new T+1 settlement cycle from next year.

From February onwards, 500 stocks from the bottom in terms of market value are being moved to the shorter