On Tuesday, December 10, the Securities and Exchange Board of India (SEBI) declared that the top 500 stocks would now have the option to use the T+0 settlement cycle; the remaining 25 stocks would continue to be subject to the settlement cycle.
In an official circular issued on Tuesday, December 10, the Securities and Exchanges Board of India (SEBI), the regulator of the Indian stock market, said that the top 500 equities would now be eligible for the optional T+0 settlement.The circular states that this notification will take effect on January 31, 2025.
According to SEBI, the top 500 scrips in terms of market capitalization as of December 31, 2024, will have access to the optional T+0 settlement cycle.
The regulator added that the complete availability will be given out in 100-point increments, with the choice initially being made available to the worst 100 companies on the entire 500 list.
In its official statement, SEBI stated that the scrips would be made available for trading and settlement, beginning with the scrips at the bottom 100 companies out of the 500 companies mentioned earlier. The next 100 companies would be added each month until the top 500 companies were available for trading in the optional T+0 settlement cycle.
According to the circular, the 500 stocks that will be included will be in addition to the 25 stocks that currently come under the optional T+0 settlement cycle.
All stock brokers were also permitted to take part in the optional T+0 settlement cycle by the market regulator. With effect from January 31, 2025, stock brokers are now allowed to charge differential brokerage for T+0 and T+1 settlement cycles, as long as they stay under the legal limit.
According to SEBI, companies that are designated as Qualified Stock Brokers (QSBs) and satisfy the requirement of having a minimum number of active clients "must put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle."
Along with the current Block Deal windows of 8:45 am to 9:00 am and 2:05 pm to 2:20 pm for the T+1 settlement cycle, SEBI also instructed the stock exchanges to establish a "Block Deal window" that will only be accessible during the morning session, from 8:45 am to 9:00 am.
Regarding the block deal window, SEBI stated that "trades in the optional T+0 block window session will be settled on T+0 settlement cycle."
The official publication states that the QSB and Block Deal parameter modification will take effect on May 1, 2025.
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