Calcutta, April 1: The much dreaded T+2 or a two-day settlement cycle got off to an impressive start today.
Both Bombay Stock Exchange (BSE) and National Stock Exchange’s (NSE) turnover rose significantly on the first day of trading in the shorter settlement cycle. Initially brokers were concerned that banks might not be able to support the shorter cycle by transferring funds digitally. However, the increase in turnover indicates that brokers have buried their apprehensions.
While on the BSE shares worth Rs 1,013.94 crore were traded today compared with a turnover of Rs 843 crore yesterday, NSE registered a turnover of Rs 2,369.57 crore in its equity segment, which was nearly Rs 500 crore higher than yesterday.
The Reserve Bank of India and the Securities and Exchange Board of India had assured intermediaries that the electronic fund transfer facility would be available in 496 cities across the country. At least one bank in each of these cities would provide it, the central bank had said.
Around 14 banks, including ICICI Bank, HDFC Bank, UTI Bank and several public sector banks have implemented the facility from today. Another five banks said they would be providing it from May 1. Canara Bank has introduced the facility in 430 branches in 37 cities, while Corporation Bank claims 375 branches can provide it. State Bank of India said it would provide the facility in 20 cities from May.
While business at BSE and NSE shot up with the introduction of T+2, the turnover of Calcutta Stock Exchange fell sharply. It registered a trading volume of Rs 6.50 crore today compared with Rs 19 crore yesterday.