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25 stocks including SBI, NMDC, Vedanta will start T+0 settlement from today, will there be changes?

Let us tell you that currently T+1 settlement cycle is running in Indian stock market. Market regulator SEBI has drawn up a framework for testing the beta version of T+0 trade settlement which is being trialled today on March 28.
1 Month ago

National Stock Exchange and Bombay Stock Exchange have released the list of stocks subject to T+0 settlement. A list of 25 stocks has been released by NSE and BSE. Let us tell you that currently T+1 settlement cycle is running in Indian stock market. Market regulator SEBI has drawn up a framework for testing the beta version of T+0 trade settlement which is being trialled today on March 28.

T+0 settlement is starting in 25 stocks

Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation Ltd (BPCL), Birlasoft, Cipla, Coforge, Divi's Laboratories, Hindalco Industries, Indian Hotels Company Ltd, JSW Steel, LIC Housing are among the 25 stocks announced by the exchange. Names include Finance, LTIMindtree, Samvardhana Motherson International, MRF, Nestle India, NMDC, Oil and Natural Gas Corporation (ONGC), Petronet LNG, SBI, Tata Communications, Trent, Union Bank of India and Vedanta.

The focus is on continuously reducing the settlement time

Currently Indian market follows T+1 settlement cycle. This means that when you buy a stock, it will appear in your demat account during the stock trading session. After T+0 settlement, those shares will be transferred to the demat account on the same day they are purchased. Currently T+0 settlement is being initiated on March 28 with 25 stocks and limited brokers. The market regulator is continuously working to reduce this period. In February 2023, it was reduced from T+2 to T+1..

Stock settlement is fastest in China

Till now, stock markets across the world follow at least a T+2 settlement cycle. But there are two countries in Asia that have grown even faster. And they are India and China. China currently follows T+0 settlement cycle while India follows T+1. If T+0 settlement cycle is implemented in India, it can only reach the par of China.

What does Alternative T+0 Settlement mean?

Chairman Buch today said that the T+0 settlement cycle in India will alternatively start today from March 28. This means traders will be able to choose whether to settle under T+0 or T+1.

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