Mumbai: You might not have to wait for two days to see your trade reflect in your account.
Come on 2022, trade (purchase or sales) will appear on your Fool Account the following day.
Sebi has decided to shorten the trading settlement cycle even though there is strong resistance from several stakeholders in the stock market.
The regulator has initiated the process of reducing the settlement cycle to T + 1 from the T + 2 system for all shares in the cash segment.
However, Sebi has provided stock exchanges to start optionally in their choice scripts.
This change is valid January 1, 2022, circling from the regulator.
On April 1, 2003, the Indian market has moved to the T + 2 settlement cycle of the T + 3.
Cycle, most of the world all over the world followed the T + 2.
System “Sebi has received requests from various stakeholders to further shorten cycles Settlement.
Based on discussions with market infrastructure institutions (MII stock exchange, clearing and deposit companies), it has been decided to provide flexibility to the stock exchange to offer a T + 1 or T + 2 settlement cycle, “the circle of the regulator.
Thus, the exchange can offer a T + 1 settlement cycle on any script after giving a month notification about change, he said.
However, Sebi said that after the exchange decided to shift the script to the T + 1 cycle, he had to continue at least for six months.
If it decides to replace the script to the T + 2 cycle, it must provide at least one month notice.
After the stock is transferred to the T + 1 cycle in exchange, this will apply to all types of transactions on the exchange.
This means for all trades – whether it’s small, small trading by retail investors or block agreements by large institutions – settlement must be under the T + 1 cycle in exchange.
Sebi has directed all MII to take the steps needed to place the right system and procedure to question the T + 1.
Settlement Cycle last week, the National Exchange Association of Indian Members (ANMI) – PAN-India Broker Agency – has been written to Sebi Not introducing the T + 1.
Settlement Cycle 1.
According to ANMI, for the smooth running of such systems, there may be operational and technical challenges at several levels, including banks, brokerage rear offices, deposits and other bodies involved in the trade process, settlement and post-solving.
Industrial sources, however, say that under the T + 1 cycle, discount brokers driven by technology will be an advantage over those who have not embraced technology in a big way for regular operations.
ANMI is dominated by traditional brokers.