Starting Thursday, the Indian market will introduce same-day trade settlement, initially testing a ‘beta’ framework on 25 stocks, including three Sensex components.
JSW Steel, State Bank of India, Bajaj Auto, MRF, Vedanta, and Ambuja Cements are among the select stocks eligible for same-day (T+0) settlement for trades executed until 1.30 pm. SEBI emphasized that all investors meeting prescribed timelines, processes, and risk requirements by market infrastructure institutions can participate in the T+0 settlement cycle.
This move follows India’s recent shift to a T+1 settlement cycle, with the US market yet to fully adopt T+1 settlement standards. The same-day settlement option will operate alongside the current T+1 cycle in the equity cash segment but may not be available to all investors immediately as some brokers are not yet prepared.
Major brokers such as Motilal Oswal Financial Services and Axis Securities have indicated their non-participation in T+0 settlement from Thursday. Others are awaiting system readiness before offering the facility.
Vijay Mehta, President of the Association of National Exchanges Members of India, clarified that the T+0 provision is optional, focusing on very liquid stocks to avoid transaction issues and minimize spot buying impact on prices.
SEBI’s earlier circular outlined that stock exchanges or depositories will periodically release the list of participating brokers in the T+0 beta version, along with providing regular progress reports. Despite initial concerns from foreign portfolio investors regarding liquidity fragmentation, SEBI Chairperson Madhabi Puri Buch confirmed discussions with offshore funds to rationalize the benefits.
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