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Published: March 13, 2024
Updated: March 13, 2024

SEBI's Game-Changing Move (T+0) : Same-Day Settlement on the Horizon

In a bold move set to redefine India's financial landscape, the Securities and Exchange Board of India (SEBI) announces plans to introduce same-day settlement in the cash segment. Chairperson Madhabi Puri Buch unveils the ambitious timeline, signalling a paradigm shift in market operations.

A New Era Dawns:

Come March 28, SEBI proposes the implementation of a T+0 settlement cycle, offering traders the option for same-day settlements. This groundbreaking initiative aims to streamline transactions and enhance market efficiency.

Charting New Territories:

Amidst global benchmarks, India currently operates on a T+1 settlement cycle, lagging behind international counterparts. SEBI's forward-looking approach seeks to align with global standards while addressing concerns raised by foreign portfolio investors (FPIs).

Addressing FPI Concerns:

Acknowledging FPI apprehensions regarding liquidity fragmentation, SEBI engages in extensive consultations to foster a deeper understanding. The regulator underscores the necessity for instantaneous settlement in a rapidly evolving financial landscape.

Rising to the Challenge:

With a keen eye on emerging trends, SEBI confronts the disruptive force of cryptocurrency markets. Chairperson Buch emphasizes the need for India's regulated market to remain competitive, offering tokenization and instant settlements to investors.

Balancing Act:

While embracing innovation, SEBI remains steadfast in upholding market integrity and transparency. The regulator emphasises the importance of maintaining investor trust while adapting to evolving market dynamics.

Implementation Roadmap:

SEBI's journey towards same-day settlement began with initial announcements in September, followed by detailed consultations and a comprehensive consultation paper in December 2023. The proposed migration to T+0 settlement unfolds in two phases, offering flexibility and gradual transition.

Looking Ahead:

As SEBI charts a course towards same-day settlement, the Indian financial landscape stands poised for transformation. The regulator's proactive measures reflect a commitment to fostering a dynamic and competitive market environment.SEBI's move towards same-day settlement heralds a new era of efficiency and innovation in India's financial markets. With an eye on global benchmarks and investor interests, the regulator navigates the complexities of a rapidly evolving landscape, ensuring India's position as a vibrant and resilient financial hub.