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Sebi introduces framework to introduce beta version of T+0 trade settlement cycle

The surveillance measures as applicable in the T+1 settlement cycle shall apply to scrips in the T+0 settlement cycle

Our Special Correspondent Mumbai Published 22.03.24, 10:43 AM
Representational image

Representational image File image

Capital markets regulator Sebi on Thursday put in place a framework to introduce the beta version of the T+0 trade settlement cycle on an optional basis.

The price in the T+0 segment will operate with a price band of +100 basis points from the price in the regular T+1 market. This band will be re-calibrated after every 50 basis points movement in the underlying T+1 market.

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The surveillance measures as applicable in the T+1 settlement cycle shall apply to scrips in the T+0 settlement cycle.

The regulator said that T+0 prices will not be considered in index calculation and settlement price computation. There will be no separate close price for securities based on trading in the T+0 segment.

This option will be available for a limited set of 25 scrips and with a limited number of brokers.

This will be in addition to the existing T+1 settlement cycle in the equity cash market.

The new framework will come into force with effect from March 28, the Securities and Exchange Board of India (Sebi) said in a circular.

T+0 would mean settlements on the same day.

With regards to eligibility, the regulator said that all investors will be eligible to participate in the T+0 settlement cycle if they can meet the timelines, process and risk requirements as prescribed by the market infrastructure institutions.

Trade timing will be between 9.15am and 1.30 pm.

The market infrastructure institutions (MIIs) will publish other operational guidelines, including mechanisms for trading, clearing and settlement, risk management etc and Frequently Asked Questions (FAQs) along with the list of 25 scrips for the Beta version of T+0 settlement cycle and disseminate the same on their respective websites.

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