NSE T+0 settlement: State Bank of India (SBI), MRF, Hindalco, Vedanta are among 25 stocks that will be eligible for the T+0 settlement cycle from March 28. Stock exchange NSE 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 (BPCL), Birlasoft, Cipla, Coforge, Divi’s Laboratories, Hindalco Industries, Indian Hotels Company Ltd, JSW Steel, LIC Housing Finance, LTIMindtree, Samvardhana Motherson International, MRF, Nestle India, NMDC, Oil and Natural Gas Corporation (ONGC), Petronet LNG, SBI, Tata Communications, Trent, Union Bank of India and Vedanta.
Earlier in the day, BSE also released the list of 25 stocks which will have new settlement timelines from Thursday. Check full list here
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. The Indian stock market fully shifted to the T+1 settlement cycle in 2023. This transition took place in three phases.
Capital 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, NSE had declared to introduce a beta version of the T+0 settlement from March 28, 2024 i.e. on Thursday.
Market analysts believe the T+0 settlement would enhance the efficiency of market operations and help freeing funds in the market.
‘’Introducing the T+0 settlement cycle in the Indian capital markets is an innovative leap by the market regulator SEBI. This new move, starting with a beta version for a select 25 scrips, signifies a monumental shift from the traditional T+2 settlement cycle, promising same-day trade settlement,'' said Vamsi Krishna, CEO, StoxBox.
‘’The transition towards T+0 not only enhances the efficiency and flexibility of market operations but also stands to substantially mitigate transactional risks, offering an immediate and tangible value to both traders and investors alike,'' added Krishna.
Analysts say that the initiative marks a critical step in aligning India's trading infrastructure with global standards, paving the way for a stronger, risk-averse, and dynamic market ecosystem. It will lend opportunities for quicker liquidity.