Sebi asks market institutions to ready T+0 settlement

Mumbai: Following its board decision to launch T+0 settlement on a pilot basis, markets regulator Sebi has asked market infrastructure institutions (MIIs) to work on the same.
The new settlement cycle will be optional in nature for investors, and will have a separate trading window. Moreover, only 25 stocks will be allowed – which are yet to be selected – and trading in this window will end at 1:30 p.m., instead of the regular T+1 settlement window of closing at 3:30 p.m.
Under the T+0 settlement system, stock trades done by 1:30 p.m. during a trading session will be settled the same day. The buyers will get the shares in their demat accounts while the sellers will have the money in their bank accounts. Under the T+1 cycle, trades are settled on the next day. Under the T+0 settlement cycle, each stock will also have a price band that is plus-minus 1 percentage point of the same stock’s price in the T+1 cycle, a Sebi circular said.