BSE and NSE Roll Out T+0 Settlement for Quicker Trades

New Delhi, Mar 28 - In a significant move towards enhancing the efficiency and reducing the risk in the capital markets, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) introduced the beta version of T+0 settlement cycle on Thursday. This initiative allows for same-day trade settlement on an optional basis for a selected list of stocks. Initially, this facility will be available for transactions in 25 securities.

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On its debut, the T+0 settlement option witnessed participation from over 60 members on both exchanges. Specifically, the BSE reported participation from 63 members, with 41 of them trading in 10 scrips and placing a total of 329 orders, which resulted in 90 trades. The exchange also noted that 49 unique investors availed themselves of this new settlement option. Meanwhile, the NSE saw 66 trading members place 209 orders for 87 unique Permanent Account Numbers (PANs) across 24 securities, culminating in 46 trades involving 14 securities, 32 trading members, and 41 PANs.

The introduction of the T+0 settlement cycle is designed to expedite the process of settling trades, enabling investors to receive funds and securities in their accounts on the same day. This development is expected to significantly reduce the risks associated with time delays in trade settlements. The successful implementation of this system was made possible through collaboration among regulators, exchanges, clearing corporations, depositories, and the member community at large.

BSE Managing Director and Chief Executive Officer Sundararaman Ramamurthy expressed satisfaction with the rollout of the first T+0 settlement cycle. "This is a significant step towards greater efficiency and reduced risk in our market," Ramamurthy stated. He further added confidence that this optional settlement cycle would contribute positively to the continued growth and development of India's capital markets.

Among the stocks available for T+0 settlement are notable names such as Bajaj Auto, Vedanta, Hindalco Industries, State Bank of India (SBI), Trent, Tata Communications, Nestle India, Cipla, MRF, JSW Steel, BPCL, ONGC, NMDC, and Ambuja Cements.

This move comes after the Securities and Exchange Board of India (Sebi) approved a framework for introducing the beta version of T+0 settlement cycle on an optional basis from March 28. Sebi has been proactive in updating settlement cycles to align with evolving market dynamics and investor needs. The regulator shortened the settlement cycle from T+5 to T+3 in 2002 and further to T+2 in 2003 as part of its mandate to develop securities markets and protect investors.