The wait for the new settlement system (T+0 Settlement) in the stock market has ended today as its beta version was launched on Thursday 28th March. However, currently, the T+0 settlement facility will not be available on all shares in the beta version.
SEBI approval for T+0
In the beta version starting today, the T+0 settlement facility will be available on 25 shares. This week, BSE released the list of 25 stocks with which the T+0 settlement is starting. Earlier this month, the SEBI Board approved a proposal related to the T+0 settlement. In the proposal put forward by the SEBI Board, it was said that the T+0 settlement would be started on March 28 with selected shares and selected brokers.
Starting with these 25 stocks
Currently, the 25 stocks with which T+0 settlement is starting include Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation, Birla Soft, Cipla, Coforge, Divis Laboratories, Hindalco Industries, Indian Hotels Company. , JSW Steel, LIC Housing Finance, LTI Mindtree, MRF, Nestle India, NMDC, ONGC, Petronet LNG, Samvardhan Motherson International, State Bank of India, Tata Communications, Trent, Union Bank of India and Vedanta.
The current system of settlement
SEBI has been trying for a long time to implement the system of instant settlement in the Indian market. Currently, the system of T+1 Settlement is applicable in the market. T+1 Settlement means settlement one day after the order is initiated. Now the system of T+0 Settlement is being implemented in its place, that is, the order will be settled on the same day when it is initiated.
T+0 Settlement will have these benefits
SEBI aims to eventually implement instant settlement. For that, first, a trial of T+0 Settlement will be taken. The beta version starting today will be reviewed for the first time after 3 months. The 3 months after that i.e. after 6 months from now, there will be a second review of the use of T+0 Settlement. After both reviews, further decisions will be taken regarding the new system of settlement. It is believed that reducing the time taken for settlement will not only reduce costs but will also improve transparency in the market.
