Sebi extends deadline for optional T+0 settlement for QSBs to Nov 1

Mumbai: Securities and Exchange Board of India (Sebi) has extended the timeline for implementation of the optional T+0 settlement cycle for qualified stock brokers (QSBs) to November 1, from the previous cut-off date of May 1, it said in a circular on Tuesday.

Earlier in December, Sebi had said that stock brokers who are designated as QSBs must put in place systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle. Under the T+0 (T refers to the day of the trade and 0 is the day of settlement) settlement, which is currently optional for market participants, trades done in shares will be settled on the same day.

The plan to shift to an optional T+0 settlement system started as a pilot project with 25 shares available for trading under this, and provision has been made to extend it to the top 500 scrips in terms of market capitalisation as on December 31, 2024.

There were as many as 11 QSBs in the Indian stock market as per a March 2024 circular.