Introduction of Beta version of T+0 rolling settlement cycle on optional basis in addition to the existing T+1 settlement cycle in Equity Cash Markets
Summary
SEBI introduces a Beta version of the T+0 rolling settlement cycle on an optional basis alongside the existing T+1 cycle for equity cash markets. The initiative applies to a limited set of 25 scrips and participating brokers, aiming to enhance cost efficiency and risk management. Market Infrastructure Institutions are mandated to implement operational guidelines, publish FAQs, and report progress fortnightly.
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it has been decided to put in place a framework for introduction of the Beta version of T+0 settlement cycle on optional basis in addition to the existing T+1 settlement cycle in equity cash market, for a limited set of 25 scrips and with a limited number of brokers.
All investors are eligible to participate in the segment for T+0 settlement cycle, if they are able to meet the timelines, process and risk requirements as prescribed by the MIIs.
The surveillance measures as applicable in T+1 settlement cycle shall be applicable to scrips in T+0 settlement cycle.
One continuous trading session from 09:15 AM to 1:30 PM.
The price in the T+0 segment will operate with a price band of +100 basis points from the price in the regular T+1 market. This band will be re-calibrated after every 50 basis points movement in the underlying T+1 market.
T+0 prices will not be considered in index calculation and settlement price computation. There shall be no separate close price for securities based on trading in T+0 segment.
There shall be no netting in pay-in and pay-out obligations between T+1 and T+0 settlement cycle.
To ensure smooth implementation, the MIIs shall publish other operational guidelines (including mechanism for trading, clearing and settlement, risk management, etc.) and Frequently Asked Questions (FAQs) along with the list of 25 scrips for the Beta version of T+0 settlement cycle and disseminate the same on their respective websites.
On periodic basis, MIIs shall disseminate the list of brokers that are participating in the Beta version of T+0 settlement cycle on their websites.
MIIs shall provide a fortnightly report on the progress of activities in the Beta version of T+0 settlement cycle till further direction.
The provisions of this circular shall come into force with effect from March 28, 2024.
take necessary steps and put in place necessary systems for implementation of the above;
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Source: SecMarx — Introduction of Beta version of T+0 rolling settlement cycle on optional basis 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.