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Sebi has expanded the optional T+0 (same day) settlement in the equity cash market to the top 500 scrips by market capitalisation.
SEBI Bhavan at BKC Bandra in Mumbai (PTI/ File Photo)
The Securities and Exchange Board of India (SEBI) announced on Tuesday an expansion of the optional T+0 (same-day) settlement cycle in the equity cash market. Starting January 2025, the T+0 settlement will include the top 500 scrips by market capitalization, as of December 31, 2024.
This initiative builds on SEBI’s earlier rollout of the T+0 settlement cycle for 25 scrips in March 2024, which was initially limited to non-custodian clients.
Phased Rollout Plan
The inclusion of the top 500 scrips will be implemented in phases. The rollout will commence in January 2025 with the bottom 100 companies from the list, followed by the next 100 companies each month, until all 500 scrips are covered. This expansion is in addition to the existing 25 scrips under the T+0 cycle.
Broker Participation and Differential Charges
SEBI has allowed all stock brokers to participate in the optional T+0 settlement cycle. They can also charge differential brokerage fees for T+0 and T+1 settlement cycles, provided these fees remain within the regulatory limits.
Block Deal Window for T+0 Settlements
A separate block deal window for T+0 settlements will operate from 8:45 AM to 9:00 AM daily. Participation in this window is optional, with trades executed here settled on the same day.
Role of Qualified Stock Brokers (QSBs)
Qualified Stock Brokers (QSBs) with a minimum number of active clients as of December 31, 2024, will be required to implement systems for seamless T+0 participation. Newly designated QSBs will have three months to comply with these requirements following any updates to the QSB list.
Institutional Investor Enablement
SEBI has directed stock exchanges, clearing corporations, depositories, and custodians to develop infrastructure that enables institutional investors to participate in T+0 settlements.
Compliance and Reporting Requirements
Market Infrastructure Institutions (MIIs) must publish operational guidelines, FAQs, and lists of eligible scrips and QSBs on their websites. Additionally, they are required to submit fortnightly reports to SEBI detailing T+0 settlement activities.
Timeline for Implementation
Provisions for expanded scrips, broker participation, and operational guidelines will take effect on January 31, 2025.
Requirements for QSBs, custodians, and block deal windows will be implemented from May 31, 2025.
This move is aimed at enhancing market efficiency and providing more flexibility to market participants.
(With PTI inputs)
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
