BSE on March 27 released the list of 25 stocks that will be eligible for T+0 settlement cycle from March 28.
Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, BPCL, Cipla, three Tata Group are among the stocks that will be eligible for the settlement cycle, said BSE.
Indian markets operate on a T+1 settlement cycle for all stocks currently, which means that the purchase and sale of shares will reflect in the demat accounts of investors one day after the transaction.
Earlier this month, capital markets regulator Sebi had put in place a framework to introduce the beta version of the T+0 trade settlement cycle on an optional basis.
To begin with, this option will be available for a limited set of 25 scrips and with a limited number of brokers.
This will be in addition to the existing T+1 settlement cycle in the equity cash market.
Sebi had said that a shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors and strengthen risk management at clearing corporations and the overall securities market ecosystem. T+0 would mean settlements on the same day. 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.
With regards to eligibility, the regulator said that all investors will be eligible to participate in the T+0 settlement cycle if they are able to meet the timelines, process and risk requirements as prescribed by the market infrastructure institutions.Trade timing will be between 9.15 am and 1.30 pm. The price in the T+0 segment will operate with a price band of +100 basis points from the price in the regular T+1 market. This band will be re-calibrated after every 50 basis points movement in the underlying T+1 market.The surveillance measures as applicable in the T+1 settlement cycle shall be applicable to scrips in the T+0 settlement cycle.
The regulator said that T+0 prices will not be considered in index calculation and settlement price computation. There will be no separate close price for securities based on trading in the T+0 segment.
Here's the complete list of 25 scrips:
AMBUJA CEMENTS LTD.
ASHOK LEYLAND LTD.
BAJAJ AUTO LTD.
BANK OF BARODA
BHARAT PETROLEUM CORPORATION LTD
BIRLASOFT LTD
CIPLA LTD.
COFORGE LTD
DIVIS LABORATORIES LTD.
HINDALCO INDUSTRIES LTD.
INDIAN HOTELS CO.LTD.
JSW STEEL LTD.
LIC HOUSING FINANCE LTD.
LTIMINDTREE LTD
MRF LTD.
NESTLE INDIA LTD.
NMDC LTD.
OIL AND NATURAL GAS CORPORATIO
PETRONET LNG LTD.
SAMVARDHANA MOTHERSON INTERNATIONAL LTD
STATE BANK OF INDIA
TATA COMMUNICATIONS LTD.
TRENT LTD.
UNION BANK OF INDIA
VEDANTA LTD
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