Introduction of T+0 rolling settlement cycle in capital market segment implemented for selected stocks

Mumbai (Maharashtra) [India], March 28 : The National Stock Exchange of India Limited (NSE) has introduced the T+0 rolling settlement cycle in the Capital Market segment.
As per SEBI (Securities and Exchange Board of India) regulation, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have announced the commencement of trading under the T+0 settlement cycle, effective from today on Beta.
In tandem with this announcement, the Bombay Stock Exchange (BSE) has released a list of 25 stocks eligible for trading under the T+0 basis.
This means shares will be transferred to the buyer's account and the funds will be deposited in the seller's account on the same day of the trade.
Currently, India follows the T+1 cycle, which means trades are settled by the next day.
These stocks encompass a diverse range of sectors and include Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation, Birlasoft, Cipla, Coforge, Divis Laboratories, Hindalco Industries, Indian Hotels Company, JSW Steel, LIC Housing Finance, LTIMindtree, MRF, Nestle India, NMDC, Oil and Natural Gas Corporation, Petronet LNG, Samvardhana Motherson International, State Bank of India, Tata Communications, Trent, Union Bank of India, Vedanta.The decision to introduce the T+0 settlement cycle stems from deliberations by India's capital market regulator, the Securities and Exchange Board of India (SEBI). Notably, SEBI approved the launch of a Beta version of the T+0 settlement, encompassing a limited set of 25 shares and a select group of brokers. This decision was made during SEBI's Board meeting held on March 15th, following feedback from stakeholders.
The T+0 settlement system mandates that transactions must be settled within the same day of their completion.
This move underscores SEBI's commitment to modernising market infrastructure and aligning settlement timelines with evolving payment systems and technological advancements in the country.
SEBI's initiative to shorten settlement cycles is part of a broader trend in the Indian securities market.
Previously, settlement cycles were reduced from T+5 to T+3 in 2002, and further to T+2 in 2003. Subsequently, the T+1 settlement was introduced in a phased manner, culminating in full implementation in January 2023.
The implementation of the T+0 settlement cycle underscores SEBI's proactive approach to adapting to changing market dynamics and fostering innovation in the securities market.
By providing investors with real-time settlement options, SEBI aims to enhance market efficiency and instill greater confidence among market participants, particularly retail investors.