SEBI approves launch of beta version of T+0 settlement from March 28
Also Read: Most unresolved investors' complaints belong to venture capital funds, Sebi data shows The securities markets had so far been operating at a T+1 settlement cycle. It introduced T+1 in 2021 and implemented in phases, with the final phase completed in January 2023.
The T+0 settlement cycle will now be made available as an option alongside the T+1 cycle. Shorter settlement cycles may lead to increased liquidity in the market and lower risk.
Further, the market regulator will review the progress at the end of three months and six months from the date of this implementation, and decide on further course of action. SEBI also approved various relaxations for foreign portfolio investors (FPIs) aimed at improving ease of doing business.
Such FPI holds not more than 50 per cent of its India equity assets under management (AUM) in the corporate group, after excluding its holding in the parent company with no identified promoter. The composite holdings of all such FPIs (that hold in excess of the 50 per cent concentration criteria and are not exempted) in the company with no identified promoter, is less than three per cent of its total equity share capital.Milestone Alert!
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