Stock market regulator ‘Securities and Exchange Board of India’ (SEBI) will start testing the beta version of T+0 settlement from March 28. It will be launched between 9:15 am and 1:30 pm. According to the circular issued by SEBI, the band will be recalibrated after every 50bps movement in the T+1 market. It will not be used for index and price settlement computations. The closing price of trading of securities in T+0 settlement will be the same as in T+1 settlement. 6 points of SEBI’s circular: Approval was received a week ago. Just a week ago, SEBI had approved the implementation of beta version of T+0 settlement on optional basis from March 28. After the board meeting last Friday, SEBI said that the board has approved the launch of the beta version of T+0 settlement for a limited set of 25 shares and with a limited set of brokers. What is T+0 settlement method? Currently the Indian stock market works on T+1 settlement cycle for all shares. T+0 means settlement of purchase and sale of shares will happen on the same day. Three months ago, the market regulator had issued a consultation paper for this and had sought public opinion on it till January 12. What is T+1, T+2 and T+3 settlement Settlement system means transfer of shares to the buyer’s account and transfer of the amount of sold shares to the seller’s account. Indian stock exchanges currently follow T+1. This means that the funds and securities are credited to your account within 24 hours of order execution. Suppose you sold shares on Wednesday. According to T+1, the money for these shares will be transferred to your account in 1 business day. If you have purchased shares then these shares will be credited to your demat account within 1 day. This same rule also applies in T+2 and T+3 settlements. Also read this news… Beta version of T+0 settlement will be launched on March 28: T+1 settlement cycle in the market now; SEBI also gave relaxation in additional disclosure for FPIs. Stock market regulator ‘Securities and Exchange Board of India’ (SEBI) has approved to implement beta version of T+0 settlement on optional basis from March 28. After the board meeting on Friday, SEBI said that the board has approved the launch of the beta version of T+0 settlement for a limited set of 25 shares and with a limited set of brokers. Click here to read the full news…
