T+0 settlement to begin by March 28 on optional basis, says Sebi Chairperson Madhabi Puri Buch: Report
Read here: Sebi’s T+0 settlement plan will boost liquidity, but analysts warn of impact on brokers’ business model In the first phase, an optional T+0 settlement cycle for trades till 1:30 pm is envisaged, with the settlement of funds and securities to be completed on the same day by 4:30 pm. In the second phase, an optional immediate trade-by-trade settlement will be carried out for trades till 3.30 pm.
The settlement cycle in the Indian stock market was shortened from T+5 to T+3 in 2002 and then further to T+2 in 2003. In 2021, Sebi introduced the T+1 settlement cycle in a phased manner, which was fully implemented from January 2023.
The SEBI chairperson also highlighted that the regulator has noticed “signs of manipulation in the SME segment", and it has been monitoring price manipulation instances at the IPO, the news report said. “We do see signs of manipulation in the SME segment.
The market has given its feedback. We are working on robust evidence and feedback for action," Buch said.
Also Read: Sebi may review rule for funds targeting overheated small caps Buch also said that the regulator was open to revising rules for mutual funds investing in small-cap stocks amid growing concerns about stretched valuations for this segment, Bloomberg News reported. The Sebi will review its rule that mandates small- and mid-cap funds to invest at least 65% of their assets in such stocks if fund managers find it is “restraining risk management," Buch told reporters in Mumbai.Milestone Alert!
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