The Securities and Exchange Board of India (SEBI) has given the green light for the trial launch of the optional T+0 settlement. This decision, made during the SEBI’s 204th meeting, marks a significant departure from the conventional T+2 settlement cycle.
The optional T+0 settlement will allow for same-day stock settlement for a select group of 25 stocks, catering to a limited number of brokers initially. This move comes on the heels of extensive stakeholder feedback, underscoring the SEBI’s commitment to fostering innovation and efficiency in the country’s financial markets.
Under this trial version, investors will have the option to settle their stock trades on the same day, streamlining the settlement process and potentially reducing transaction risks and costs. The SEBI plans to conduct further consultations, including with users of the beta version, to gather feedback and assess the trial’s progress.
The board will review the trial’s outcomes at three and six-month intervals from its implementation date to evaluate its effectiveness and determine future steps.
The move, which is expected to have far-reaching implications for India’s capital markets, will position them as more competitive and agile on the global stage, according to the SEBI.
