SEBI will roll out the beta version of the same-day trade settlement from Thursday. BSE and NSE have released a list of 25 stocks that will be eligible under the new regime.
The T+0 settlement will be introduced on an optional basis with a limited number of brokers. This means the existing T+1 settlement cycle will continue in the market.
What is T+0 settlement?
For the unversed, T+0 means that the funds and securities transacted on each trading day will be settled on the same day. India has been following a T+1 settlement cycle since 2021. Under T+1, trades will be settled on the following business day.
The original T+5 cycle was shortened to T+3 in 2002 and to T+2 in 2003.
Which are the 25 stocks eligible for T+0 settlement?
BSE on Wednesday released the list of 25 scrips eligible for T+0 settlement.
These are Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation, Birlasoft, Cipla, Coforge, Divi's Laboratories, Hindalco Industries, Indian Hotels, JSW Steel, LIC Housing Finance, LTIMindtree, MRF, Nestle India, NMDC, ONGC, Petronet LNG, Samvardhana Motherson International, State Bank of India, Tata Communications, Trent Ltd, Union Bank of India and Vedanta.
T+0 settlement option not available after 1.30 pm
Trade timing for T+0 settlement will be between 9.15 am and 1.30 pm. There will be no separate close price for securities based on trading in T+0 segment. The charges and fees applicable under T+1 will apply for the new regime.
For details about how T+0 settlement can help investors, click HERE.
