Mumbai, Mar 28:
SEBI has issued operational guidelines for stock exchanges to launch the same-day transaction settlement (or “T+0”) beta version for a select few cash segment stocks starting today.
Introducing the T+0 settlement would be of great benefit for traders and investors who are looking for immediate liquidity, allowing them to utilise funds and react to the market quickly in the highly volatile sessions.
The T+0 settlement will occur concurrently with the current T+1 settlement cycle. Presently, the market is considering same-day transaction settlement within a year after fully embracing the T+1 cycle.
SEBI’s aim is to boost investor confidence and simplify the trading process for retail investors.
Sellers under the present T+1 system may only get 80% of their cash on the day of sale; the remaining 20% must be waited for the following day. Nonetheless, sellers will have instant access to 100% of their cash on the day of transaction due to the new T+0 settlement system.
