SEBI further extends deadline for T+0 settlement implementation for big brokers

(Representative image)

Capital market regulator Securities and Exchange Board of India (SEBI) has announced a further extension of the deadline for Qualified Stock Brokers (QSBs) to implement systems and processes required for the optional T+0 rolling settlement in the equity cash market.

The move comes in response to feedback from QSBs highlighting operational challenges in meeting the previous deadline of November 1, 2025, which itself was an extension from the original May 1, 2025 timeline.

SEBI circular stated, “Considering the challenges highlighted by QSBs in ensuring timely readiness of systems on or before November 01, 2025 and request to extend the same for ensuring smooth implementation, it has been decided to extend the timeline for QSBs for putting in place the necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle”.

SEBI stated that the new timeline will be communicated at a later date, ensuring brokers have adequate time for seamless participation of investors in the optional T+0 settlement cycle.

T+0 settlement is a settlement mechanism in the securities market where trades are settled on the same day that they are executed. T+0 settlement was introduced for faster liquidity so that investors can get their money or shares on the same day. It also reduces the counter party risk or chance of default because settlement is immediate. The idea of same day settlement also boosts market efficiency and speeds up the overall trading and clearing process.

All other provisions of SEBI’s December 10, 2024 circular, which expanded the scope of T+0 settlements in addition to the existing T+1 cycle, will remain unchanged.

The extension reflects SEBI’s efforts to balance technological readiness with investor protection in India’s evolving securities market.