Sebi extends optional T+0 to top-500 stocks

New Delhi: Markets regulator Sebi on Tuesday expanded the optional T+0 (same day) settlement in the equity cash market to the top-500 scrips by market capitalization (mcap). Also, Sebi said that all stock brokers can participate in the optional T+0 settlement cycle. Further, they have been permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within the regulatory limit. Meanwhile, markets regulator also allowed the Indian Commodity Exchange (ICEX) to exit the exchange space after its recognition was withdrawn over two years ago. The move comes after the exchange fulfilled regulatory requirements.

The Securities and Exchange Board of India (Sebi) introduced an optional T+0 settlement cycle for 25 scrips in March 2024. Initially, it was available only to non-custodian clients. Based on feedback, Sebi has decided to expand the scope of the optional T+0 settlement cycle.

In its circular, Sebi said T+0 settlement will now cover the top 500 scrips by market capitalisation as of December 31, 2024. The rollout will start with the bottom 100 companies from this list in January 2025, adding the next 100 each month until all 500 are included. This is in addition to the existing 25 scrips. Sebi has said that separate block deal window for T+0 settlements will operate from 8:45 AM to 9:00 AM. Participation is optional, and trades here will settle on the T+0 cycle.