SEBI Further Extends Timeline for Qualified Stock Brokers to Implement Systems for Optional T+0 Settlement Cycle [Read Circular]
SEBI extends the timeline for Qualified Stock Brokers to implement systems for the optional T+0 settlement cycle until further notice
SEBI
SEBI
The Securities and Exchange Board of India (SEBI) issued a circular dated October 30, 2025, granting a further extension to Qualified Stock Brokers (QSBs) for implementing the systems and processes required to support the optional T+0 settlement cycle in the equity cash market. The move comes after SEBI received multiple requests from stock brokers and market institutions citing technical and operational challenges in meeting the earlier deadline.
The T+0 settlement cycle allows investors to receive money and securities on the same day a trade is executed, instead of the next day as followed under the current T+1 settlement system. SEBI had first introduced this concept through a circular issued on December 10, 2024, expanding the settlement options to improve liquidity and speed in the Indian stock market.
As part of that framework, SEBI had directed all brokers designated as QSBs, who met the prescribed number of active clients as of December 31, 2024, to put in place robust systems to enable investors to participate seamlessly in the optional T+0 settlement cycle.
Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here
Initially, these provisions were to take effect from May 1, 2025. However, due to concerns raised by QSBs regarding technological preparedness, SEBI extended the deadline to November 1, 2025, through another circular dated April 29, 2025.
Now, with this latest circular, SEBI has once again postponed the implementation timeline, acknowledging that several QSBs are still not ready to roll out the required infrastructure. The regulator stated that the revised date for implementation will be communicated separately after further review.
SEBI clarified that all other provisions of the December 10, 2024 circular remain unchanged. It has directed all Market Infrastructure Institutions (MIIs) including stock exchanges, clearing corporations, and depositories to take necessary steps for future implementation, amend their internal rules if required, and inform investors and other market participants through their websites.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
