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Business News/ Markets / Stock Markets/  BSE T+0 settlement: Ambuja Cements, Bajaj Auto, SBI among 25 stocks that will have new settlement timeline from tomorrow
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BSE T+0 settlement: Ambuja Cements, Bajaj Auto, SBI among 25 stocks that will have new settlement timeline from tomorrow

BSE T+0 settlement: Ambuja Cements, Bajaj Auto, BPCL, Cipla, SBI, Vedanta are among 25 stocks that will be eligible for T+0 settlement cycle from March 28.

Stock exchange BSE has released a list of these 25 stocks that will be eligible for the shortened settlement cycle from tomorrow. (MINT_PRINT)Premium
Stock exchange BSE has released a list of these 25 stocks that will be eligible for the shortened settlement cycle from tomorrow. (MINT_PRINT)

BSE T+0 settlement: Ambuja Cements, Bajaj Auto, BPCL, Cipla, SBI, and Vedanta are among 25 stocks that will be eligible for the T+0 settlement cycle from March 28.

Stock exchange BSE has released a list of these 25 stocks that will be eligible for the shortened settlement cycle from tomorrow.

The 25 scrips that will be available for the T+0 cycle are - 

Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation Ltd, Birlasoft, Cipla, Coforge, Divi’s Laboratories, Hindalco Industries, Indian Hotels, JSW Steel, LIC Housing Finance, LTIMindtree, MRF, Nestle India, NMDC, Oil and Natural Gas Corporation, Petronet LNG, Samvardhana Motherson International, State Bank of India, Tata Communications, Trent, Union Bank of India and Vedanta.

A T+0, or Trade + 0 settlement cycle, means the transfer of securities and funds will happen on the same day of the trade. This will run parallel to the existing T+1 settlement cycle in the equity cash market. Shorter settlement cycles help increase liquidity in the market and lower risk.

Read here: BSE to launch beta version of T+0 settlement next week. Check date, other details

The Indian stock market fully shifted to the T+1 settlement cycle in 2023. This transition took place in three phases.

Markets regulator Securities and Exchange Board of India (SEBI) had earlier issued a framework to introduce the beta version of the T+0 trade settlement cycle on an optional basis.

In the beginning, this option would be available for a limited 25 scrips and with a limited number of brokers. 

Following the Sebi guidelines, BSE had declared to introduce a beta version of the T+0 settlement from 28th March 2024 i.e. on Thursday. 

Also Read: T+0 settlement to begin by March 28 on optional basis, says Sebi Chairperson Madhabi Puri Buch: Report

The T+0 settlement will be optional for 25 stocks and applicable only for trades executed between 9:15 am and 1:30 pm. 

Trading in the T+0 cycle will be subject to a price band of 100 basis points above or below prices under the T+1 cycle, according to BSE.

After the introduction of the beta version of T+0 settlement, all the charges or fees like Transaction Charges, STT, and Regulatory/ Turnover Fees that are applicable for T+1 settled security will be applicable for T+0 settled security, BSE said.

Also Read: Sebi’s T+0 settlement plan will boost liquidity, but analysts warn of impact on brokers’ business model

Market analysts believe the T+0 settlement would enhance the efficiency of market operations and help freeing funds in the market.

“T+0 settlement would help in freeing up brokers’ own funds within the system thus reducing the overall cost of doing business. Currently, if a client sells shares the amount is credited to the trading account instantaneously. Client is free to trade with this capital or buy further delivery. On the exchange side, this fund gets credited to the broker only after settlement on T+1.

With T+0 settlement the funds would be received by 4:30 pm thus freeing up brokers' capital involved in the business," said Shrey Jain, Founder & CEO, SAS Online.

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Published: 27 Mar 2024, 01:49 PM IST
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