T+1 SETTLEMENT

HOW T+1 SETTLEMENT SYSTEM WILL BENEFIT IN INDIA 

Published By Livemint | 27 Jan, 2023

Indian stock market is going to become first in the world that will have T+1 settlement cycle for investors

Such fast settlement cycle may get implemented in equity mutual funds and Exchange Traded Funds

The T+1 settlement cycle means that trade-related settlements must be done within a day

Indian equity markets will benefits from a liquidity perspective

It shows growth on the digital journey to ensure seamless settlements within 24 hours

This will also help investors in reducing the overall capital requirements

It will also boost operational efficiency as the rolling of funds and stocks will be faster

It also reduces and frees up capital required to collateralise that risk