Unlocking Fast Trades: SEBI Expands T+0 Settlement

The Securities and Exchange Board of India (SEBI) is expanding the optional T+0 settlement in the equity cash market to the top 500 scrips by market capitalization. Stock brokers can participate in this cycle, charging differential brokerage. Key provisions take effect starting January 31, 2025.

In a significant move to enhance market efficiency, the Securities and Exchange Board of India (SEBI) has decided to broaden its optional T+0 settlement cycle to cover the top 500 scrips by market capitalization. This expansion follows the board's initial rollout limited to 25 scrips available only to non-custodian clients.

According to SEBI's latest circular, the T+0 settlement will progressively cover these top 500 scrips, starting with the bottom 100 from January 2025, and adding another 100 each subsequent month. Additionally, market participants, including stock brokers, will be able to charge differing brokerage rates within regulatory limits for T+0 and T+1 settlements.

SEBI has instructed all market infrastructure players to ensure institutional investors' access and readiness for the expanded settlement mechanism. The operational guidelines, including block deal windows and systems for Qualified Stock Brokers, are set to be fully effective by mid-2025.

(With inputs from agencies.)