World's fastest T+0 stock settlement kicks off in India, these stocks are eligible: What you need to know

T+0 stock settlement: The Bombay Stock Exchange (BSE) released a list of 25 stocks that will be eligible for T+0 settlement cycle from today (March 28). Stocks that are eligible for the settlement cycle include Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, BPCL, Cipla, three Tata Group stocks, among others.

T+0 stock settlement: People look at a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

What changes owing to T+0 settlement?

Read more: T+0 cycle: These 25 stocks will be eligible for same-day settlement cycle. What changes and what it means?

Currently, Indian markets operate on a T+1 settlement cycle for all stocks under which purchase and sale of shares reflects in the demat accounts of investors one day after the transaction. But markets regulator Sebi has now put in place a framework to introduce the beta version of the T+0 trade settlement cycle. This will be on an optional basis and will be available for a limited set of 25 scrips and with a limited number of brokers.

Hindustan Times - your fastest source for breaking news! Read now.

Will T+1 settlement end?

No. T+0 settlement cycle will be available in addition to the existing T+1 settlement cycle in the equity cash market.

What has Sebi said on the changes?

Read more: Elon Musk says X users to get Premium, Premium+ services for free on this condition: Details here

Sebi said that a shorter settlement cycle will bring cost and time efficiency and also help investors with transparency and strengthen risk management. Earlier Sebi shortened the settlement cycle to T+3 from T+5 in 2002 and to T+2 in 2003.

Who will be eligible for T+0 settlement cycle?

Sebi said that all investors will be eligible to participate in the T+0 settlement cycle if they are able to meet the timelines, process and risk requirements. Trade timing will be between 9.15 am and 1.30 pm and 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. Although, T+0 prices will not be considered in index calculation and settlement price computation.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs

• ABOUT THE AUTHOR

  

  Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.