It will be done in a phased manner, a Sebi release said.
The decision was taken in a meeting of the SEBI board held in Mumbai on Monday which was the regulator’s first following the allegations of conflict of interest against chairperson Madhabi Puri Buch by US-based Hindenburg Research and India’s Congress party.
All the registered stock brokers can offer access to the optional T+0 settlement cycle to their investors and they will be free to charge differential brokerage for the same.
Qualified Stock Brokers who meet the parameter of having a minimum number of active clients for qualification as QSB, will have to put in place systems to enable seamless participation of their clients in optional T+0 settlement cycle.
However, the regulator has given QSBs and custodians what it called “appropriate time” for implementation based on consultations with all stakeholders.Foreign Portfolio Investors (FPIs) and Mutual Funds will be able to access the optional T+0 settlement cycle, the release said.An optional block deal window mechanism will be introduced under T+0 settlement cycle as an 8.45 am to 9.00 am session, alongside the existing block windows under T+1 settlement cycle.
The earlier proposal to move from optional T+0 settlement to optional instantaneous settlement is not under consideration for now, the release said.
The optional T+0 settlement in equity cash market will continue to co-exist with the extant T+1 settlement cycle.
In the T+0 settlement cycle, trades are settled on the same day they occur, which means that the transfer of shares to the buyer’s account and funds deposited in the seller’s account happen on the same day of the trade.
NSE had introduced a Beta version of T+0 rolling settlement cycle on optional basis in addition to the existing T+1 settlement cycle in equity cash markets with effect from March 28, 2024.
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