Stock exchanges are set to launch the same-day transaction settlement (or “T+0”) beta version for a select few cash segment stocks starting today ( Thursday, March 28).
The T+0 settlement will occur concurrently with the current T+1 settlement cycle. Presently, the market is considering same-day transaction settlement within a year after fully embracing the T+1 cycle.
Sellers under the present T+1 system may only get 80% of their cash on the day of sale; the remaining 20% must be waited for the following day. Nonetheless, sellers will have instant access to 100% of their cash on the day of transaction due to the new T+0 settlement system.
For a first 25 scrips and a limited set of brokers, exchanges will implement a shortened trading cycle. After evaluating the results at the three- and six-month marks, capital market regulator Securities and Exchange Board of India (SEBI) will determine the next step.
Starting today, 25 stocks, including State Bank of India (SBI), MRF, Hindalco, and Vedanta, would be eligible for the T+0 settlement cycle.
Here’s the list of 25 stocks that will be available for T+0 settlement starting today; 28 March ?
Ambuja Cements
Ashok Leyland
Bajaj Auto
Bank of Baroda
Bharat Petroleum Corp
Birlasoft
Cipla
Coforge
Divis Labs
Hindalco Industries
Indian Hotels
JSW Steel
LIC Housing Finance
LTIMindtree
MRF
Nestle India
NMDC
Oil and Natural Gas Corp
Petronet LNG
Samvardhana Matherson International
State Bank of India
Tata Communication
Trent
Union Bank of India
Vedanta
India is only the second country to implement this T+0 settlement cycle, following ??China.
