WHAT IS T+0 TRADING SETTLEMENT CYCLE?
The T+0 trading settlement cycle allows same-day settlement of trades in addition to the existing T+1 cycle.
BENEFITS OF T+0 TRADE SETTLEMENT
1) Cost and time efficiency: Reduces time and cost associated with settling trades.
2) Transparency in charges: Provides better visibility of trade charges.
3) Stronger risk management: Strengthens risk management at clearing corporations and the securities market ecosystem.
4) Flexibility for investors: Faster pay-out of funds against securities for sellers and vice versa.
5) Enhanced market efficiency: Frees up capital in the securities market, enhancing overall market efficiency.
SECURITIES AVAILABLE FOR TRADING IN T+0 SETTLEMENT CYCLE
The stock exchanges have announced a set of 25 scrips allowed for trading on the T+0 settlement cycle.
ELIGIBILITY FOR PARTICIPATION IN T+0 SETTLEMENT CYCLE
All investors are eligible to participate if they meet the prescribed requirements.
TRADE TIMINGS AND PRICE BAND
The optional T+0 settlement cycle will have one continuous trading session from 09:15 AM to 1:30 PM.
FUTURE PLANS
SEBI has proposed to introduce optional instant settlement at a later stage.
