SEBI rolls out T+0 settlement for top 500 stocks: Details here

The Securities and Alternate Board of India (SEBI) has announced plans to elongate the no longer mandatory T+0 settlement cycle to the top 500 firms by market capitalisation as of December 31, 2024.

The roll-out will originate with the bottom 100 scrips, progressively incorporating the subsequent 100 every month, making sure all 500 firms are lined.

“All inventory brokers may possibly possibly participate in the T+0 settlement cycle and price differential brokerage for T+0 and T+1 settlements within regulatory limits,” SEBI mentioned in its round.

To defend far from disruptions, SEBI on the beginning enabled the T+0 mechanism handiest for non-custodian purchasers from March 28, 2024. Now, the machine will progressively produce greater, with Qualified Stock Brokers (QSBs) required to put in force the valuable infrastructure for seamless participation of institutional buyers.

Within the T+0 settlement cycle, trades are settled on the identical day they occur, that approach that the transfer of shares to the purchaser’s account and funds deposited in the seller’s account happen on the identical day of the change.

For block deals, a dedicated T+0 settlement window will operate from 8:45 am to 9:00 am, alongside the existing T+1 block deal house windows.

While the eligibility of scrips under the T+0 settlement will reach into enact on January 31, 2025, QSBs, custodians, and block deal provisions will likely be acceptable from Can also 1, 2024.

This initiative follows a a success trial of the Beta model of the T+0 settlement cycle, launched on March 28, 2024. In T+0, trades are settled the identical day, making sure the purchaser receives shares and the seller funds on the change date itself.

Stock exchanges, clearing companies, and depositories are surely tasked with making sure systems are ready for the gentle implementation of this initiative, enabling sooner settlements and enhanced effectivity in the equity cash markets.