SEBI rolls out T+0 settlement for top 500 stocks: Details here

The Securities and Exchange Board of India (SEBI) has announced plans to extend the optional T+0 settlement cycle to the top 500 companies by market capitalisation as of December 31, 2024.

The roll-out will commence with the bottom 100 scrips, gradually incorporating the next 100 each month, ensuring all 500 companies are covered.

“All stock brokers may participate in the T+0 settlement cycle and charge differential brokerage for T+0 and T+1 settlements within regulatory limits,” SEBI stated in its circular.

To avoid disruptions, SEBI initially enabled the T+0 mechanism only for non-custodian clients from March 28, 2024. Now, the system will gradually expand, with Qualified Stock Brokers (QSBs) required to implement the necessary infrastructure for seamless participation of institutional investors.

In the T+0 settlement cycle, trades are settled on the same day they occur, which means that the transfer of shares to the buyer's account and funds deposited in the seller's account happen on the same day of the trade.

For block deals, a dedicated T+0 settlement window will operate from 8:45 am to 9:00 am, alongside the existing T+1 block deal windows.

While the eligibility of scrips under the T+0 settlement will come into effect on January 31, 2025, QSBs, custodians, and block deal provisions will be applicable from May 1, 2024.

This initiative follows a successful trial of the Beta version of the T+0 settlement cycle, introduced on March 28, 2024. In T+0, trades are settled the same day, ensuring the buyer receives shares and the seller funds on the trade date itself.

Stock exchanges, clearing corporations, and depositories are now tasked with ensuring systems are ready for the smooth implementation of this initiative, enabling faster settlements and enhanced efficiency in the equity cash markets.