Indian stock exchanges have taken a decision to implement the T+1 equity settlement cycle from 25 February 2022, after receiving approval from the market regulator SEBI for a phase-wise roll-out, a joint statement by bourses and depositories said.
Stock exchanges said that the bottom 100 stocks considering the daily market capitalisation averaged in October will be brought under the new settlement system followed by 400 stocks in March. The last set of stocks will be brought under the new T+1 settlement cycle system by 27 January 2023 including large cap stocks such as RIL, HDFC Bank, Axis Bank, ITC, DRL, Titan, TCS, and Bajaj Twins.
Bourses said that any new stock making its debut after October 2021, will be added to the list based on the market capitalisation calculated on the basis of average trading price of 30 days after commencement of trading.
In September, the capital market regulator gave a go-ahead to stock exchanges to trasnsition towards T+1 settlement that will further boost the settlement process in the stock market to one day from two days earlier.