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regular-article-logo Friday, 24 May 2024

SEBI to implement 'beta' version of T+0 settlement, trades to begin with 25 scrips

Madhabi Puri Buch, chairperson, Sebi, had recently said that the optional T+0 settlement will be brought in from March 28. A T+0 settlement will mean that an investor who is selling shares will receive money on the same day

Our Special Correspondent Mumbai Published 16.03.24, 11:08 AM
Securities and Exchange Board of India

Securities and Exchange Board of India File picture

The Securities and Exchange Board of India (Sebi) on Friday decided to implement a “beta’’ version of the optional T+0 settlement.

This decision was taken at a board meeting of the regulator. In a late evening announcement, Sebi said that taking into account stakeholder feedback, its board approved the launch of a beta version for a limited set of 25 scrips, and with a limited set of brokers.

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Sebi added that parallelly it will continue to engage in further stakeholder consultations, including with the users of the beta version. The board will review the progress at the end of three months and six months from the date of this implementation, and decide on further course of action.

Madhabi Puri Buch, chairperson, Sebi, had recently said that the optional T+0 settlement will be brought in from March 28. A T+0 settlement will mean that an investor who is selling shares will receive money on the same day.

Currently, the Indian equity markets follow a T+1 system wherein an investor buying shares will get the delivery (shares in his or her demat account) the next business day, while the seller will get the funds the next day.

Sebi’s move to go for a beta version could be on the back of reservations expressed by certain stakeholders.

The Sebi board on Friday approved a proposal to exempt additional disclosure requirements for FPIs having more than 50 per cent of their India equity AUM in a single corporate group if the concentrated holdings of the portfolio investors are in a listed company with no identified promoter.

The board approved a proposal to relax the timelines for disclosure of material changes by them.

The proposal of FPI registrations that expire due to non-payment of registration fee shall now be permitted to be reactivated within 30 days from such expiry.

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