SEBI Allows T+1 Settlement For Stocks – SEBI gives option regarding settlement cycle of shares, can choose T+1

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The T+1 settlement cycle will be effective from January 1, 2022. The settlement cycle represents the time period

Mumbai. The Securities and Exchange Board of India (SEBI) has extended the options for stock exchanges. Now you can choose between T+1 and T+2 settlement cycles. The decision came after the market regulator received requests from various stakeholders to further shorten the settlement cycle.

“Based on discussions with market infrastructure institutions (stock exchanges, clearing corporations and depositories), SEBI has decided to provide flexibility to stock exchanges to offer either T+1 or T+2 settlement cycles,” SEBI said in a statement on Tuesday. has been taken.”

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The T+1 settlement cycle will be effective from January 1, 2022. The settlement cycle represents the time period within which stock exchanges have to settle security transactions. T+1 means that the settlement is approved within one day of the actual transaction taking place.

The stock exchange may choose to offer a T+1 settlement cycle on any stock after giving at least one month advance notice to all stakeholders regarding the change in settlement cycle. It has to be brought to the public at large. It should also be broadcast on the website.

After opting for a T+1 settlement cycle for a scrip, the stock exchange has to mandatorily continue the same for a minimum period of six months. If the stock exchange intends to go back to the T+2 settlement cycle, it may do so by giving one month advance notice to the market.

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