T0 Settelment By SEBI - (Security and exchange board of india) in india.
The Securities and Exchange Board of India (SEBI) has proposed the introduction of a facility for clearing and settlement of funds and securities on T+0 (same day) and instant settlement cycle on an optional basis. The facility will be in addition to the existing T+1 (trade plus one day) settlement cycle in the secondary markets for the equity cash segment.
The markets regulator, in a consultation paper, has proposed to introduce a shorter settlement cycle in two phases. How does this cycle work now and why has this been proposed? We explain.
What is the current settlement cycle followed in the securities market?
In its endeavour to keep pace with the changing times and carry out its mandate of development of securities markets and investor protection, SEBI has shortened the settlement cycle to T+3 from T+5 in 2002 and subsequently to T+2 in 2003.
