NSE defers T+0 rolling settlement cycle, to conduct live trading from DR site on Sept 30-Oct 1

NSE will conduct mock trading sessions from its disaster recovery site on September 28

The National Stock Exchange of India (NSE) has deferred its circular on implementing the T+0 rolling settlement cycle in the capital market segment until further notice. The exchange will issue a revised date for the introduction of the T+0 settlement cycle through a separate communication in the future.

Since its introduction in March, the T+0 mechanism has offered an alternative settlement cycle, operating alongside the standard T+1 system, where trades are typically settled on the following day. The T+0 cycle enables quicker capital release, giving clients greater control over their securities and enhancing risk management through clearing corporations.

India's settlement processes have evolved over the years, starting with a T+5 settlement cycle (trade plus five days) before shifting to T+3 in 2002 and subsequently to T+2 in 2003. The phased implementation of the T+1 settlement cycle began in 2021 and was fully operational by January 2023.

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The T+0 settlement cycle is open to all investors who can meet the timelines, processing, and risk management requirements set by the stock exchanges and clearing corporations. The cut-off pay-in time for the T+0 settlement cycle, as prescribed by the clearing corporation, is 3:30 PM.

In addition to this update, the NSE will conduct mock trading sessions for capital market segment as well as futures and options (F&O) from its disaster recovery site on September 28, 2024. Live trading from the disaster recovery site will take place between September 30, 2024, and October 1, 2024.

The exchange has also noted, "Members are requested to note that the Exchange Contingency Tests shall be carried out between 12:00 PM and 01:00 PM during the mock trading session on Saturday, September 28, 2024. Members are requested to plan their activities accordingly."

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