BSE and NSE introduce T+0 optional same-day settlement for select stocks

Stock exchanges BSE and NSE launched the beta version of T+0, or same-day trade settlement on an optional basis for select stocks.

To begin with, this will offer investors an option to transact in 25 securities in T+0 settlement.

More than 60 members each participated in both exchanges on the first day.

On the BSE, 63 members participated in this optional segment. As many as 41 members traded in 10 scrips and placed 329 orders, resulting in 90 trades.

Unique investors using this facility stood at 49, the bourse said in a statement. Separately, the NSE said 66 trading members placed 209 orders for 87 unique PANs in 24 securities on the first day.

This resulted in 46 trades in 14 securities involving 32 trading members and 41 PANs.

Designed to settle trades on the same day, the T+0 settlement facilitates quicker receipt of funds and securities in investor accounts, thereby reducing the risks associated with time lag.

The rollout involved collaboration between regulators, exchanges, clearing corporations, depositories, and the member community at large.

"We are pleased to inform the successful implementation of the first T+0 settlement cycle today (28th March 2024). This is a significant step towards greater efficiency and reduced risk in our market," BSE Managing Director and Chief Executive Officer Sundararaman Ramamurthy said.

"We are confident that this optional settlement cycle will contribute to the continued growth and development of the capital markets in India," Ramamurthy said.

Bajaj Auto, Vedanta, Hindalco Industries, State Bank of India, Trent, Tata Communications, Nestle India, Cipla, MRF, JSW Steel, BPCL, ONGC, NMDC, and Ambuja Cements are among the 25 scrips available for T+0 settlement.

After deliberations and approval of the Sebi's board, the regulator last week put in place a framework for the introduction of the beta version of the T+0 settlement cycle on an optional basis from March 28.

SEBI, in its effort to keep pace with the changing times and carry out its mandate of development of securities markets and investor protection, shortened the settlement cycle to T+3 from T+5 in 2002 and subsequently to T+2 in 2003.