FPIs raise a storm over T+1 settlement cycle, approach Sebi chief

Sebi on Tuesday introduced an optional T+1 settlement cycle for the markets, with effect from January 1

Rattled by the Securities and Exchange Board of India’s (Sebi’s) decision to allow a shorter settlement cycle, foreign investors have written to the market regulator, warning of a reversal of gains by unforeseen consequences of moving to the new system.

A clutch of foreign portfolio investors (FPIs) also plan to reach out to global index providers MSCI and FTSE Russell with their concerns about India’s move towards the T+1 settlement cycle.

The switch to the T+1 cycle could make the domestic capital markets less attractive to global investors, who may view India as a pre-funding market where money needs to