BSE and NSE to Introduce Same-Day Payment for Selected Stocks, Enhancing Investor Experience
In a bid to accelerate share transactions and streamline investor experience, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will commence trials of the T+0 settlement system, marking a significant departure from the existing T+1 framework.
Key Points:
- Introduction of T+0 Settlement: BSE and NSE will initiate trials with 25 selected stocks, allowing investors to receive payment on the same day they sell their shares, ushering in a new era of real-time settlements in the Indian stock market.
- Transition from T+1 System: Currently, the stock market operates on the T+1 settlement system, where payment is made one day after the shares are sold. The move to T+0 settlement aims to expedite payment processing and enhance liquidity in the market.
- SEBI Guidelines: The Securities and Exchange Board of India (SEBI) released guidelines outlining a phased approach for the transition to T+0 settlement. The first phase will settle shares sold by 1:30 pm on the trading day by 4:30 pm, with the second phase settling all transactions until 3:30 pm immediately.
- Benefits for Investors: The T+0 settlement system offers several advantages for investors, including immediate access to funds from share sales, prompt crediting of purchased shares to demat accounts, and increased flexibility to capitalize on market opportunities.
- SEBI’s Vision: SEBI Chairperson Madhuri Puri Buch aims to reduce trade settlement time to one hour by March 2024, followed by the full implementation of the T+0 settlement system by October 2024, aligning with global best practices.
