NSE & BSE are set to start with the t+0 settlement cycle today (28th March).
Based on the recommendations of the MIIs, public comments and recommendations of the Risk Management Review Committee of SEBI, the decision to bring in the t+0 settlement as an optional instant settlement was proposed alongside the previous t+1 settlement.
T+0 settlement: This settlement cycle as a part of the capital market segment ensures that trade happens on the same day as the settlement. With this cycle, the sellers will start to get access to 100% cash on the same day of transaction as compared to the 80-20 rule in the T+1 cycle.
List of 25 companies eligible for the t+0 settlement cycle:
- Ambuja Cements
- Ashok Leyland
- Bajaj Auto
- Bank of Baroda
- Bharat Petroleum Corporation
- Birlasoft
- Cipla
- Coforge
- Divis Laboratories
- Hindalco Industries
- Indian Hotels Company
- JSW Steel
- LIC Housing Finance
- LTIMindtree
- MRF
- Nestle India
- NMDC
- Oil And Natural Gas Corporation
- Petronet LNG
- Samvardhana Motherson International
- State Bank Of India
- Tata Communications
- Trent
- Union Bank Of India
- Vedanta
Benefits of t+0 settlement: This settlement ensures transparency and immediate cost and time efficiency benefits. It can help mitigate transactional risks and help India’s global infrastructure work and compete at a global level.
Guidelines for T +0 settlement:
- SEBI has released a series of operational guidelines to ensure the smooth implementation of the new proposal. This includes the establishment of a single trading window from 9:15 am to 1:30 pm. The surveillance system present in the T+1 system will also be present for his settlement cycle to ensure market integrity.
- T+0 settlement cycle will not have a separate closing price and the prices will not be considered for index price calculation.
- The pricing system of the T+0 settlement cycle is based on a 100-point scale (100 points = 1%) and will be based on the closing price of the corresponding T+1 settled security. The prices will be recalibrated with every change of 50 points.
