Enhancement in the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets
Summary
SEBI enhances the scope of the optional T+0 rolling settlement cycle in Equity Cash Markets by expanding eligible scrips to the top 500 by market capitalization. The circular permits all stock brokers and Qualified Stock Brokers to participate, while mandating Market Infrastructure Institutions and Custodians to establish necessary systems. Implementation is phased, with key provisions applying from January 31, 2025, and specific operational requirements for QSBs, Custodians, and Block Deals effective from May 1, 2025.
Text
Optional T+0 settlement cycle shall be made available to top 500 scrips in terms of market capitalization as on December 31, 2024... gradually include the next bottom 100 companies every month till top 500 companies are available
The above list of scrips shall be in addition to the existing 25 scrips available for trading and settlement under the Beta version of optional T+0 settlement cycle
All stock brokers are allowed to participate in the optional T+0 settlement cycle. Stock Brokers are permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within the regulatory limit
Stock brokers who are designated as QSBs and meet the parameter of minimum number of active clients for qualification as QSB as on December 31, 2024 shall put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle
In case of change in the list of QSBs, the exiting QSB shall continue to provide the necessary systems and process and the new QSBs shall put in place the necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle within 3 months from the date of updation of the list
The Stock Exchanges, Clearing Corporations and Depositories (collectively referred as Market Infrastructure Institutions (MIIs)); and Custodians shall put in place necessary systems and processes for seamless participation of institutional investors in optional T+0 settlement cycle
A mechanism for Block Deal window shall be put in place by the Stock Exchanges under the optional T+0 settlement cycle... available only for the morning session during 8:45 am to 9:00 am... trades in optional T+0 block window session will be settled on T+0 settlement cycle
Participation under this window shall be optional for the investors
To ensure smooth implementation, the MIIs shall publish the operational guidelines (including mechanism for trading, clearing and settlement, risk management, etc.) and Frequently Asked Questions (FAQs) along with the list of eligible scrips and list of QSBs for the optional T+0 settlement cycle and disseminate the same on their respective websites
MIIs shall provide a fortnightly report on the activities under optional T+0 settlement cycle till further direction
The provisions at paragraphs 3.1, 3.2, 4 and 5 above shall be applicable with effect from January 31, 2025
The provision at paragraphs 3.3, 3.4 and 3.5 above shall be applicable with effect from May 01, 2025
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Source: SecMarx — Enhancement in the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.