Earlier, futures and options shares were to be transitioned in two batches for T+1 settlement. (file)
New Delhi:
In a bid to bring in operational efficiency, stock exchanges on Wednesday said all stocks on which derivative contracts are available will move to T+1 (trading plus one day) settlement cycle from January 2023.
Earlier, futures and options (F&O) shares were to be converted into T+1 settlement in two batches – December 2022 and January 2023, according to a joint statement issued by Market Infrastructure Institutions (MII) – Stock Exchange, Clearing Corporation. and depositories.
T+1 means that the settlement relating to market trade needs to be concluded within one day of the actual transaction taking place.
In September last year, the Securities and Exchange Board of India (SEBI) permitted stock exchanges to introduce T+1 settlement cycle from January 1, 2022, on any securities available in the equity segment.
Subsequently, all MIIs issued a joint press release regarding the roadmap for the implementation of the T+1 settlement cycle. Accordingly, all the listed scrips in the stock exchanges – BSE, NSE and MSE – were ranked in descending order based on the average daily market capitalization as of October 2021.
In the first phase, the bottom 100 stocks were made available for initiation of T+1 settlement from the trade date of February 25 this year, based on the ranking. Thereafter, from March onwards, on the last Friday (trading day) of every month, the next 500 stocks from the list of ranked stocks are being made available for T+1 settlement every month till January 2023.
“In order to bring in operational efficiency and ease for market participants, it has now been decided that all stocks on which derivative contracts are available will be settled in a single batch in January 2023 with T+1 settlement instead of two separate batches.” will be transferred to,” the joint statement noted.
Accordingly, the stock exchanges will modify the original schedule for transition of stocks to T+1 settlement.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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