The Securities and Exchange Board of India (Sebi), the Indian stock market regulator, said that the optional T+0 settlement will now be available to the top 500 stocks, according to an official circular released on December 10.
Sebi has announced the rollout of an optional T+0 settlement cycle for the top 500 stocks by market capitalization, starting with the bottom 100 companies from January 31, 2025. Brokers are permitted to charge differential rates for T+0 and T+1 settlements, enhancing flexibility for investors and market participants
The Securities and Exchange Board of India (Sebi), the Indian stock market regulator, said that the optional T+0 settlement will now be available to the top 500 stocks, according to an official circular released on December 10.
Says Sebi: “Optional T+0 settlement cycle shall be made available to top 500 scrips in terms of market capitalization as of December 31, 2024.”
According to Sebi, the option would be first rolled out for the bottom 100 companies of the total 500 list and the entire availability would be rolled out in intervals of 100.
According to Sebi in its official statement: “The scrips shall be made available for trading and settlement starting with scrips at bottom 100 companies out of the aforesaid 500 companies and gradually include the next bottom 100 companies every month till top 500 companies are available for trading in optional T+0 settlement cycle.”
As per the circular, out of 25 stocks in total, that already come under the optional T+0 settlement cycle, these upcoming 500 stocks will be an addition to the existing ones.
Sebi also added that all stock brokers are now allowed to participate in the optional T+0 settlement cycle. Within the regulatory limit, stock brokers are now allowed to charge differential brokerage for T+0 and T+1 settlement cycles, effective from January 31, 2025.
The market regulator added that entities that are designated and meet the parameter of a minimum number of active clients for qualification as Qualified Stock Brokers (QSBs) “shall put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle.”
Sebi also directed the stock exchanges to implement a “Block Deal Window” which would be available only for the morning session from 8:45 am to 9:00 am. This comes in addition to the existing Block Deal windows of 8:45 am to 9:00 am and 2:05 pm to 2:20 pm for the T+1 settlement cycle. ““The trades in optional T+0 block window session will be settled on the T+0 settlement cycle,” says Sebi.
According to the statement, the QSB and Block Deal parameter update would be effective from May 1, 2025.