SEBI Introduces Optional T+0 Settlement for Top 500 Stocks

resr 5paisa Research Team

Last Updated: 11th December 2024 - 11:59 am

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The Securities and Exchange Board of India (SEBI) has announced the introduction of an optional T+0 settlement cycle for the top 500 stocks based on market capitalization, as per an official circular issued on December 10. This initiative will take effect on January 31, 2025.

Under the new framework, the T+0 settlement option will be implemented in phases. Initially, the bottom 100 companies of the top 500 list will be included, with an additional 100 companies added each month. This phased rollout will continue until all 500 stocks are covered.

According to SEBI, 25 stocks are already part of the T+0 settlement cycle, and these 500 additional stocks will expand the scope of the initiative. The circular also permits stock brokers to participate in the T+0 settlement cycle and allows them to levy differential brokerage fees for T+0 and T+1 cycles starting January 31, 2025.

Qualified Stock Brokers (QSBs) must establish systems to enable investor participation in the T+0 cycle. SEBI highlighted that entities meeting the QSB criteria, including a specified number of active clients, are required to ensure smooth integration.

Additionally, SEBI mandated a new “Block Deal window” for the T+0 cycle, operational from 8:45 AM to 9:00 AM. This will be in addition to the current T+1 block deal windows of 8:45 AM to 9:00 AM and 2:05 PM to 2:20 PM. Trades conducted during this session will settle under the T+0 cycle.

The updated parameters for QSB participation and block deal sessions will come into effect on May 1, 2025, as outlined in SEBI’s circular.

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