BSE, NSE to introduce ‘T+0’ trade settlement in securities on March 28
On March 21, the Sebi issued the framework for implementing the beta version of same-day settlement on an optional basis, in addition to the T+1 settlement cycle.
Stock exchanges will introduce the T+0 trade settlement for a limited set of securities from March 28, and the market timing will be one continuous session between 9:15 am and 1:30 pm.All the charges/fees such as transaction charges, securities transaction tax, etc. that are applicable for securities under the T+1 settlement, will apply for T+0 too, exchanges said.
On March 21, the Securities and Exchange Board of India (Sebi) issued the framework for implementing the beta version of same-day or T+0 settlement on an optional basis, in addition to the T+1 settlement cycle.
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 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.
Further, 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.
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.
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.
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Source: Stocks-Markets-Economic Times
