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Sebi has expanded the non-obligatory T+0 (similar day) settlement within the fairness money market to the highest 500 scrips by market capitalisation.
SEBI Bhavan at BKC Bandra in Mumbai (PTI/ File Photo)
The Securities and Exchange Board of India (SEBI) introduced on Tuesday an growth of the non-obligatory T+0 (same-day) settlement cycle within the fairness money market. Starting January 2025, the T+0 settlement will embrace the highest 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 restricted to non-custodian shoppers.
Phased Rollout Plan
The inclusion of the highest 500 scrips shall be applied in phases. The rollout will start in January 2025 with the underside 100 firms from the record, adopted by the following 100 firms every month, till all 500 scrips are lined. This growth is along with the present 25 scrips underneath the T+0 cycle.
Broker Participation and Differential Charges
SEBI has allowed all inventory brokers to take part within the non-obligatory T+0 settlement cycle. They also can cost differential brokerage charges for T+0 and T+1 settlement cycles, offered these charges stay throughout the regulatory limits.
Block Deal Window for T+0 Settlements
A separate block deal window for T+0 settlements will function from 8:45 AM to 9:00 AM each day. Participation on this window is non-obligatory, with trades executed right here settled on the identical day.
Role of Qualified Stock Brokers (QSBs)
Qualified Stock Brokers (QSBs) with a minimal variety of energetic shoppers as of December 31, 2024, shall be required to implement methods for seamless T+0 participation. Newly designated QSBs can have three months to adjust to these necessities following any updates to the QSB record.
Institutional Investor Enablement
SEBI has directed inventory exchanges, clearing companies, depositories, and custodians to develop infrastructure that permits institutional traders to take part in T+0 settlements.
Compliance and Reporting Requirements
Market Infrastructure Institutions (MIIs) should publish operational tips, FAQs, and lists of eligible scrips and QSBs on their web sites. Additionally, they’re required to submit fortnightly studies to SEBI detailing T+0 settlement actions.
Timeline for Implementation
Provisions for expanded scrips, dealer participation, and operational tips will take impact on January 31, 2025.
Requirements for QSBs, custodians, and block deal home windows shall be applied from May 31, 2025.
This transfer is geared toward enhancing market effectivity and offering extra flexibility to market members.
(With PTI inputs)
(This story has not been edited by News18 employees and is revealed from a syndicated information company feed – PTI)
