Mumbai: The Securities and Exchange Board of India (SEBI) has extended the implementation deadline for settlement of alternative T Plus Zero (on the same day of trading) for eligible stock brokers (QSB) in equity cash market.
SEBI has stated through a circular that the decision has been taken after consulting stock exchanges, clearing corporations and deposits as well as feedback received from QSB. This deadline has been extended so that the implementation process remains smooth.
The deadline for QSB was fixed till 1 May, so that they could equip themselves with essential systems and procedures, so that investors can participate in the alternative T Plus zero settlement cycle. About 10 qualified stock brokers had requested SEBI to extend the May 1 deadline to offer settlement on the same business day. Currently, only a few brokers offer this option to their customers, as the risk management and order management systems of many brokers are not able to handle large quantities for disposal on the same day.
It is noteworthy here that India is the first country to implement T +1 settlement cycle for all listed stocks and scrips since January 27, 2023. A year later, on March 28, 2024, SEBI introduced alternative T Plus Zero Settlement. Initially, this T Plus was started for zero disposal 25 scrips. SEBI announced on 10 December that alternative T Plus zero settlement will be implemented for the top 500 shares from 31 January 2025.
It was decided to start with shares of the lowest 100 companies and gradually include the next 100 shares every month for this alternative T Plus Zero Settlement, so that trading up to the top 500 companies can be available.
Currently, investors can trade in shares of more than 5,600 companies. SEBI has clarified that it is necessary to apply the necessary system procedures to enable investors to easily participate in T+Zero alternative disposal to the units of minimum active customers and other criteria in QSB criteria.
Additionally, SEBI has directed the stock exchanges to organize a new block deal window from 8:45 am to 9:00 pm for the morning session and the current window T +1 will be for disposal from 8:45 am to 9:00 pm to 9:00 pm and 2:05 pm to 2:20 pm. SEBI has clarified that the trades will be settled according to the T Plus Zero settlement cycle in the alternative T Plus Zero Block Window Session.
The post of TH +0 trading was extended to 1 November on the same day for the first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
