April 19, 2024
Home » What is the T+0 Trading Settlement Cycle?
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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.


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