Market regulator's T+1 settlement proposal faces opposition from FPIs

Foreign investor body writes to the market regulator highlighting operational difficulties

A one-day trade settlement cycle (called T+1 in industry parlance) could remain a pipe dream for the domestic markets. The Securities and Exchange Board of India’s (Sebi’) proposal has met with stiff opposition from foreign portfolio investors (FPIs) — considered the price-setters for the Indian market.
 
Industry body Asia Securities Industry and Financial Markets Association (Asifma) has shot a letter to the markets regulator and the finance ministry highlighting operational difficulties for FPIs if the settlement cycle is halved.
 
At present, the domestic equity markets follow a T+2 settlement — the transfer of cash and securities between the