Sebi to launch beta version of T+0 trade settlement for 25 scrips

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.