Same day settlement takes off to a tepid start
Ashok Leyland saw 502 shares being traded on 28 March and one share on 2 April on BSE , after which no trades took place on the exchange under T+0. Similarly, public sector State Bank of India saw only 23 shares being traded between 28 March and 19 April on NSE. Bank of Baroda witnessed just 114 shares traded on 28 March and nothing thereafter.
To give context, total traded quantity of SBI on the extant T+1 series of NSE was 188.7 million shares and for Bank of Baroda was 172.6 million shares from 28 March to 19 April. In other cases, no trades have happened at all. In software company Coforge no trade happened on either NSE and BSE.
Same was the case in MRF and Birlasoft and JSW Steel. Describing the launch as a bold move, analysts said more investors would hop on to the bandwagon when the number of stocks under T+0 settlement increases and trade timing is extended to normal market timings. Currently the same day settlement stocks are traded from 9:15 am to 13:30 pm while the normal market runs from 9:15 am to 15:30 pm.
However , market analysts said investor traction would increase as time progressed and more stocks get added. "It's a bold experiment and will gather pace when the universe of eligible stocks is extended," said Rajesh Palviya, senior vice president (technicals & derivatives) at Axis Securities. "It's in testing phase, so let's see if more stocks are added and timing is extended .
We will keep our fingers crossed." "Sebi is a proactive regulator which tries different market developmental ideas... not all expected to be a roaring success on Day 1," said Uttam Bagri, promoter director, BCB Brokerage Pvt. Ltd.
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