Exchanges should work for real-time settlement of trades: Sebi

Markets regulator Sebi on Wednesday said stock exchanges should move towards real-time settlement of trades through the use of blockchain technology. When asked about allowing 'work from home for brokers' permanently, Tyagi said it needs to be examined. He said work from home is a temporary relaxation given to brokers.

Markets regulator Sebi on Wednesday said stock exchanges should move towards the real-time settlement of trades through the use of blockchain technology. The exchanges should start the real-time settlement with a trial or on a pilot basis, Sebi Chairman Ajay Tyagi said at a FICCI event.

Currently, settlement happens in T+2 days. Here, T stands for the day of trade. When asked about allowing 'work from home for brokers' permanently, Tyagi said it needs to be examined.

He said work from home is a temporary relaxation given to brokers. However, trading from home has worked successfully, so it can be examined and the downsides of this also need to be considered. In March, the Securities and Exchange Board of India (Sebi) permitted brokers and traders to take the trading terminals outside the authorized locations.

This was the first time brokers were given this facility in the wake of the coronavirus pandemic. "We ensured the normal working of capital markets during the entire lockdown period, ensuring continuity of operation," Tyagi said.

Talking about the overseas listing of companies, he said the regulator has not received any proposal from companies in this regard.