Optional T+0 settlement cycle shall be made available to top 500 stocks from Dec 31: SEBI

Optional T+0 settlement cycle shall be made available to top 500 scrips: SEBI

Market regulator Securities and Exchange Board of India (SEBI) on December 10 issued a circular on enhancement in scope of optional T+0 rolling settlement cycle in equity cash markets.

SEBI said optional T+0 settlement cycle shall be made available to top 500 scrips in terms of market cap as on December 31, 2024.

All stock brokers are allowed to participate in optional T+0 settlement cycle, added SEBI.

Stock brokers are permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within regulatory limit, the regulator said.

T+0 settlement cycle refers to a mechanism wherein the shares are credited in the investor’s account on the day of trade itself. In a sell transaction, the money would be credited in the account on the same day.

SEBI also mentioned the mechanism for block deal window in T+0 settlement cycle.

"A mechanism for Block Deal window shall be put in place by the Stock Exchanges under the optional T+0 settlement cycle. The Block Deal window under the optional T+0 settlement cycle shall be available only for the morning session during 8:45 am to 9 am in addition to the existing Block Deal windows of 8:45 am to 9 am and 2:05 pm to 2:20 pm for T+1 settlement cycle. The trades in optional T+0 block window session will be settled on T+0 settlement cycle," said SEBI.

"To ensure smooth implementation, the MIIs shall publish the operational guidelines (including mechanism for trading, clearing and settlement, risk management, etc.) and Frequently Asked Questions (FAQs) along with the list of eligible scrips and list of Qualified Stock Brokers (QSBs) for the optional T+0 settlement cycle and disseminate the same on their respective websites," added SEBI.