The Securities and Exchange Board of India (Sebi) on Tuesday announced that the top 500 stocks will be eligible for the same-day settlement cycle (T+0) in a phased manner.
Photograph: Francis Mascarenhas/Reuters
This move is seen as a fresh push to ready the market ecosystem to speed up the settlement cycle, which currently stands at T+1.
The wider eligibility will become effective on January 31, 2025.
The same-day settlement cycle will continue to be optional.
At present, only 25 stocks are available for the T+0 settlement.
The beta version of the settlement cycle was launched in March this year; however, the response has been tepid, with negligible volumes.
“The scrips shall be made available for trading and settlement starting with scrips at the bottom 100 companies and gradually include the next bottom 100 companies every month until the top 500 companies are available for trading in the optional T+0 settlement cycle,” said Sebi.
The market capitalisation will be computed as of December 31.
Further, stock brokers will be permitted to charge a differential brokerage for the facility.
Qualified stock brokers, or those classified as large brokers given their client size and volume managed, have been directed to put in place processes and systems for smooth implementation.
The same will be made effective for institutional clients, with custodians directed to put in place systems accordingly.
Additionally, Sebi announced a block deal window from 8:45 am to 9:00 am for the T+0 settlement cycle, in addition to the existing block deal windows for the T+1 settlement.
Sebi proposes simplification of NRI trading in derivatives
The Securities and Exchange Board of India (Sebi) has proposed simplification of the process for non-resident Indians (NRIs) to trade in exchange-traded derivatives contracts.
Currently, NRIs are required to obtain a custodial participant (CP) code from the clearing corporation (CC) through a clearing member (CM).
Further, they are allowed to deal with one CM at a time.
However, with the introduction of the permanent account number (PAN) as a unique identifier in the securities market, Sebi proposes to dispense with the requirement for a CP code.
Under the proposed changes, NRIs can use their PAN to monitor position limits, and can deal with multiple CMs.
This is expected to bring ease of investment for NRIs and simplify the procedure for monitoring NRI position limits.
Exit order issued against Indian Commodity Exchange
The Securities and Exchange Board of India (Sebi) on Tuesday issued an exit order against the Indian Commodity Exchange (ICEX), which was granted recognition as a commodity, derivatives exchange in 2009.
In 2022, its recognition was, withdrawn “due to non-compliance with the minimum net-worth requirement.” Subsequently, the exchange’s shareholders had approved a voluntary surrender of its recognition.
In an order dated December 10, Sebi has said if ICEX plans to continue as a corporate entity under the Companies Act 2013 it should change its name and not use the term ‘exchange’ or any such variant in its name.
