Achi news desk-
Mumbai1 hour ago
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The Securities and Exchange Board of India (SEBI) has implemented T+0 settlement on a discretionary basis in the stock market from today ie March 28. Earlier yesterday, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have released the list of 25 stocks where same day settlement is implemented from today.
Both stock exchanges have started trialling a T+0 settlement system with 25 shares. That means, the day you sell these shares, the entire money will be credited to your account on the same day.
Prior to this, a T+1 settlement system was applicable in the stock market. That means, after selling the shares, payment was made after a day. Three months ago, the market regulator had released consultation papers for T+0 and sought public opinion on it until January 12. 6-step guidelines were published 6 days ago.
All eligible investors, T+0 settlement will be implemented in two stages.
SEBI said that all investors will be eligible for T+0 settlement system. SEBI had proposed to implement T+0 settlement in two phases.
First step: If you sell shares by 1:30pm on the trading day, they will be settled by 4:30pm.
Second step: All transactions made until 3:30pm will be settled immediately. Once it starts, the first phase will end.
How will investors benefit from a T+0 settlement?
- Through T+0 settlement system, funds will be credited to investors’ accounts on the day of share sale, which they can use for any other purpose.
- While buying the shares, the shares will be credited to the demat account on the same day, so if you wish, you can also pledge the shares on the same day. Now the shares are credited to the demat account on the next day.
- This will increase liquidity in the market, so that investors will be able to buy other shares without waiting for the waiting period. Also, investors will be able to make money in the market even if they have money for a short period of time.
The immediate settlement will start by October 2024
Earlier, SEBI Chief Officer Madhuri Puri Buch had said that we are preparing to reduce the trade settlement time to 1 hour by March next year (2024) and then implement instant trade settlement by October 2024.
Before 2002 there was a T+5 settlement system
There was a T+5 settlement system in our country before 2002. SEBI implemented T+3 settlement in 2002. T+2 settlement was implemented in the year 2003. The market continued to work on this system until the year 2021. After this the T+1 system was introduced. It was implemented in January 2023. Because of this, it started settling money and shares within 24 hours.
