The stock exchanges will introduce the beta version of the T+0, or same-day trade settlement, on an optional basis for select stocks from Thursday.
It will run parallel to the existing T+1 settlement cycle in the equity cash market. The option of T+0 trade settlement will initially be available for 25 scrips and with a limited number of brokers.
A T+0 settlement means that an investor who is selling shares will receive money on the same day.
Currently, a T+1 system is followed wherein an investor buying shares will get the delivery (shares in his or her demat account) the next business day, while the seller will get the funds the next day.
Recently, Sebi had announced operational guidelines for the new mechanism. The Sebi board had decided to implement a `beta’ version of the T+0 settlement after taking into account stakeholder feedback. It will review the progress at the end of three months and six months from the date of the implementation.
Sebi has said that all investors can participate in the T+0 settlement cycle if they are able to meet the timelines, process and risk requirements as prescribed by the market infrastructure institutions (MIIs). Trade timing for the new settlement cycle will be between 9.15 am and 1.30 pm.
