Sebi to launch beta version of T+0 trade settlement for 25 scrips
Mumbai, Mar 21, 2024
Synopsis
Sebi introduces beta T+0 trade settlement cycle alongside T+1 for 25 scrips with limited brokers. Investors must meet process and risk requirements. There will be one continuous session from 09:15 am-1:30 pm. The surveillance measures that are currently applicable in the T+1 settlement cycle will also be applicable to scrips in the T+0 settlement cycle.
The Securities and Exchange Board of India (Sebi) has put in place a framework to introduce the beta version of the T+0 trade settlement cycle on an optional basis. This will be in addition to the existing T+1 settlement cycle in the equity cash market.
The beta version of T+0 settlement will be introduced for a limited set of 25 scrips and with a limited number of brokers, Sebi said.
The capital market regulator has laid out operational guidelines for the short settlement cycle. They are as follows:
Eligibility: All investors are eligible to participate in the T+0 settlement cycle, if they are able to meet the timelines, process and risk requirements as prescribed by the market infrastructure institutions.
Surveillance Measures: The surveillance measures that are currently applicable in the T+1 settlement cycle will also be applicable to scrips in the T+0 settlement cycle.
Trade Timing: There will be one continuous trading session from 09:15 am to 1:30 pm.
Price Band: 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 point movement in the underlying T+1 market.
Index calculation and settlement price computation: Prices of stocks trading under T+0 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.
Netting of Obligations: There will be no netting in pay-in and pay-out obligations between the T+1 and the T+0 settlement cycle.
Stock exchanges will publish other operational guidelines and the list of 25 scrips for the beta version of the T+0 settlement cycle, Sebi said.
On a periodic basis, stock exchanges will disseminate the list of brokers who are participating in the T+0 settlement cycle.
“Sebi shall continue to do further stakeholder consultation, including with users of the Beta version of T+0 settlement cycle,” the regulator said in a circular.
[Reuters]
