Phased T+1 settlement cycle roll-out a win for foreign portfolio investors

Real transition will begin only in Dec '22 for foreign investors

The phased rollout of the T+1 (trading day plus one) settlement cycle announced by stock exchanges has brought a cheer to foreign portfolio investors (FPIs), many of whom had opposed the move towards a shorter cycle.

Domestic bourses took a joint decision to move towards the T+1 cycle in 12 phases, starting with the bottom 100 stocks from February-end to the top 200 stocks by January 2023.

The move is not expected to disturb the apple cart as the stocks included in the first nine phases have little or no FPI holdings. Further, the trading volume and market capitalisation of this group