Sebi increased the number of eligible scrips for the T+0 settlement cycle and introduced a new asset class which offers exposure to derivatives. Read on to know more
Securities and Exchanges Board of India, on September 30,2024, approved increasing the number of eligible scrips for the optional T+0 settlement cycle in phases, from 25 to the top 500 in terms of market capitalization. All registered stock brokers can offer access to the optional T+0 settlement cycle to their investors, and they are free to charge differential brokerage for the same. Foreign Portfolio Investors (FPIs), and Mutual Funds will be able to access the optional T+0 settlement cycle.
An optional Block Deal window mechanism will be introduced under the T+0 settlement cycle from 8.45 am to 9.00 am. The proposal to move to optional instantaneous settlement is not under consideration for now.
Modes of Trading
Option for investors to trade in the secondary market (cash segment) either using UPI block mechanism (ASBA-like for secondary markets), or a 3-in-1 trading facility in addition to the current mode of trading:
In addition to the current mode of trading, the Qualified Stock Brokers (QSBs) shall provide either the facility of trading supported by a blocked amount in the secondary market (cash segment) using the UPI block mechanism (an ASBA-like facility for the secondary market) or the 3-in-1 Trading Account facility, with effect from February 1, 2025.
QSB clients will have the option to either continue with the existing trading facility by transferring funds to Trading Members (TMs) or opt for the above-mentioned options provided by the QSB.
New Asset Class
Sebi has introduced a new investment product under the existing Mutual Fund framework, which offers exposure to derivatives. This product aims to bridge the gap between Mutual Funds and Portfolio Management Services, offering greater flexibility and risk-taking capabilities. The minimum investment limit for the new product will be Rs 10 lakh per investor.
No leverage will be permitted under this asset class, and investment in unlisted and unrated instruments will not be permitted, beyond those already permitted for Mutual Funds and derivatives exposure.