Capital market regulator Sebi has revised the settlement schedule through a communication on September 8 in the derivatives, cash and SLBM (Securities Lending and Borrowing Mechanism) segments, informing investors about the delays in credit or debit of securities and funds from their demat accounts.
The changes were made following settlement holidays declared by Clearing Corporations (CCs) in consultation with stock exchanges, on September 5 and September 8, ie, Friday and Monday.
In the derivatives segment, the trades of September 4, September 5 and September 8 will be settled together on September 09, ie, Tuesday. In the cash and SLBM segment too, trades executed on September 4 and September 5 will be settled on September 9. the regulator added that trades of September 8 and September 9 will be settled on September 10, ie, Wednesday.
In the normal course, cash market trades in equities are settled on a T+1 basis. Now, with the revised schedule, trades executed on September 4 and 5 will be credited or debited only by September 9. Similarly, trades executed on September 8 will be settled on September 10.
The revised settlement could impact availability of funds, as proceeds from shares sold on September 4-8 will be credited later than usual. Stock Exchanges have already informed stakeholders that due to the revised settlement cycle, the ex-date and cum-date for corporate actions will also be impacted.
Securities borrowed or lent in this period will also follow the revised settlement dates, leading to a similar delay in delivery or return of securities.
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