T+0 a minus for brokers on Diwali Day
Mumbai: Spare a thought this Diwali for stockbrokers and their staff—they’re feeling a little less cheery this festive season. Blame it on T+0, also known as same-day settlement, and other reforms. Every year, the start of the Hindu calendar year is marked by the Muhurat trading session, a bit of Diwali ceremony carried over from the days of open outcry.
Brokers and their employees had asked the BSE and NSE to advance the hour-long session to 10-11 in the morning from the traditional 6-7 pm, as this would allow them to complete post-trading operations by noon and give them enough time to celebrate Diwali with their families on Lakshmi Puja. That request has been rejected by the exchanges, according to people with knowledge of the matter.
The BSE and NSE announced this week that the Muhurat session will be held on November 1 at the usual time, marking the start of Samvat 2081, with a preopening at 5:45 pm.
Until last year, all post-trade operations were carried over to the next trading day, clubbing the settlement with the next trading day’s cycle, allowing brokers and their staff to leave immediately after the Muhurat session. With several changes in rules over the past year, brokers have to complete all post-trading formalities on the same day—a process that takes two to three hours after markets close.
There’s a possible solution though. Brokers and employees had also suggested that if the exchanges could not accommodate a morning session, posttrade operations could be completed the following trading day
