Sebi likely to defer T+1 settlement cycle, opt for phase-wise transition

According to experts, moving stocks within the key benchmark indices such as the Nifty 50 and the Sensex to the T+1 cycle could prove risky if liquidity dries up and if FPIs halt trades

The Securities and Exchange Board of India (Sebi) is likely to defer and tweak the diktat on implementing a T+1 settlement cycle.

The settlement cycle may now be implemented in a phased manner, following representations from foreign investors, and may apply only to the bottom 100 companies starting February 25, according to reports. 

The provisions of the circular, which were supposed to take effect from January 1, 2022, are facing stiff resistance from foreign portfolio investors (FPI), who have cited time zone differences, risk of trade mismatches and issues with arranging forex on trade day as reasons that could hamper