In a major regulatory change, the Securities and Exchange Board of India (Sebi) has announced that 500 stocks will be moved to the T+0 settlement system, starting January 31, 2024. This shift aims to enhance market efficiency and liquidity.
What is T+0 Settlement?
T+0 settlement refers to the immediate settlement of trades on the same day, as opposed to the traditional T+2 settlement, where the trade is settled within two working days. This change is expected to streamline the trading process and reduce settlement risks for investors.
Sebi’s Rationale Behind the Shift
Sebi’s decision is part of a broader effort to modernize India’s securities market. By moving to T+0 settlement, Sebi aims to improve liquidity, enhance transparency, and provide investors with faster access to their funds.
Impact on Investors and Traders
This change will primarily benefit active traders and investors, providing quicker settlement times. It also opens up opportunities for high-frequency trading and greater market efficiency.
List of Affected Stocks
The list of 500 stocks that will be part of the T+0 settlement will be released soon, allowing investors and traders to prepare for the transition.
Sebi’s decision to implement T+0 settlement for 500 stocks is a significant step toward improving the efficiency and competitiveness of India’s financial markets. The move is expected to have a positive impact on both short-term traders and long-term investors.
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