Settlement test

Phased, optional transition to T+1 is a pragmatic decision

The Securities and Exchange Board of India (Sebi) is moving ahead with its plans of tightening settlement timetables to “T+1”, which is the settlement and transfer of funds and securities within one working day of a given trade, from the current cycle of T+2 (two days). However, the new cycle will be introduced from January 1, 2022, and will be optional. Exchanges can decide which scrips, if any, they would move to T+1, and will give a month’s notice before switching the settlement period in a scrip. Once there is a switch, the scrip will remain on T+1 for a