Sebi Expands T+0 Settlement to Top 500 Stocks

New Delhi, Dec 10 (PTI) Markets regulator Sebi on Tuesday expanded the optional T+0 (same day) settlement in the equity cash market to the top 500 scrips by market capitalisation.

Also, Sebi said that all stock brokers can participate in the optional T+0 settlement cycle.

Further, they have been permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within the regulatory limit.

The Securities and Exchange Board of India (Sebi) introduced an optional T+0 settlement cycle for 25 scrips in March 2024. Initially, it was available only to non-custodian clients.

Based on feedback, Sebi has decided to expand the scope of the optional T+0 settlement cycle.

In its circular, Sebi said T+0 settlement will now cover the top 500 scrips by market capitalisation as of December 31, 2024.

The rollout will start with the bottom 100 companies from this list in January 2025, adding the next 100 each month until all 500 are included.

This is in addition to the existing 25 scrips.

Sebi has said that separate block deal window for T+0 settlements will operate from 8:45 AM to 9:00 AM.

Participation is optional, and trades here will settle on the T+0 cycle.

The regulator asked Qualified Stock Brokers (QSBs) with a minimum number of active clients as of December 31, 2024, must implement systems for seamless T+0 participation. Further, new QSBs have three months to adopt these systems after any list updates.

The regulator asked stock exchanges, clearing corporations, depositories and custodians to establish systems to enable institutional investor participation in T+0 settlements.

Market Infrastructure Institutions (MIIs) must publish guidelines, FAQs and lists of eligible scrips and QSBs on their websites. They must submit fortnightly reports on T+0 activities.

Sebi said that provisions for expanded scrips, broker participation and operational guidelines will take effect from January 31, 2025, while those related to QSBs, custodians, and block deal windows take effect from May 31, 2025.