Accelerating the settlement cycle & challenges facing FPIs

The concern is that should, for example, one exchange turn into a T+1 exchange, we could see a fragmentation of the order book and the liquid­ity, should domestic volumes move to such T+1 exchange

About two decades back, one would have had to walk to the nearest taxi point to get a taxi to travel to a chosen destination. Today, an app brings the taxi to the customer’s location.

Technology has made this possible. Also, about two decades back, G N Bajpai, then chairman of the Securities and Exch­ange Board of India (Sebi), had expressed a desire to implement the T+1 settlement cycle by April 2004. This was after India had gone live with T+3 effective April 2002. The regulators did move this further to T+2 effective April 2003, but the move to T+1 has