Sebi Clarifies Misreporting on T+0 System Mandate

Sebi clarified misreporting that suggested it was making the T+0 system mandatory for all. The focus was on the ASBA facility, which ensures funds move after allotment completion. A potential annual benefit of Rs 2,800 crore was noted if ASBA is fully adopted in the secondary market.

Capital markets regulator Sebi clarified on Wednesday that media reports suggesting a mandatory implementation of the T+0 system were incorrect.

In a detailed statement, Sebi explained that its chairperson Madhabi Puri Buch was discussing the Application Supported by Blocked Amount (ASBA) facility, not the T+0 settlement cycle.

At an NSE event, Buch highlighted a report indicating potential savings of Rs 2,800 crore annually if ASBA is fully adopted by retail investors. Sebi emphasized that the option to use ASBA would remain with clients, contrary to reports of a mandatory T+0 system.