Capital markets regulator Securities and Exchange Board of India (SEBI) has approved the launch of the beta version of the T+0 settlement on an optional basis from March 28. On March 15, after a meeting with its Board, SEBI announced the new and optional settlement cycle.
‘’Taking into account stakeholder feedback, the Board approved the launch of a Beta version of optional T+0 settlement, for a limited set of 25 scrips, and with a limited set of brokers,” said SEBI in its statement on Friday, March 15.
‘’In parallel, SEBI shall continue to do further stakeholder consultation, including with the users of the Beta version. The Board shall review the progress at the end of three months and six months from the date of this implementation, and decide on further course of action,” it added.
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The securities markets had so far been operating at a T+1 settlement cycle. It introduced T+1 in 2021 and implemented in phases, with the final phase completed in January 2023. The T+0 settlement cycle will now be made available as an option alongside the T+1 cycle. Shorter settlement cycles may lead to increased liquidity in the market and lower risk.
Further, the market regulator will review the progress at the end of three months and six months from the date of this implementation, and decide on further course of action. SEBI also approved various relaxations for foreign portfolio investors (FPIs) aimed at improving ease of doing business.
Such FPI holds not more than 50 per cent of its India equity assets under management (AUM) in the corporate group, after excluding its holding in the parent company with no identified promoter.
The composite holdings of all such FPIs (that hold in excess of the 50 per cent concentration criteria and are not exempted) in the company with no identified promoter, is less than three per cent of its total equity share capital.
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Published: 15 Mar 2024, 10:56 PM IST