Starting March 28, Ambuja Cements, Bajaj Auto, BPCL, Cipla, SBI, and Vedanta, along with 19 other stocks, will qualify for the T+0 trade settlement cycle on the BSE.
The BSE has published a list of 25 stocks eligible for the abbreviated settlement cycle.
Here is the full list of 25 stocks:
- AMBUJA CEMENTS LTD.
- ASHOK LEYLAND LTD.
- BAJAJ AUTO LTD.
- BANK OF BARODA
- BHARAT PETROLEUM CORPORATION LTD
- BIRLASOFT LTD
- CIPLA LTD.
- COFORGE LTD
- DIVIS LABORATORIES LTD.
- HINDALCO INDUSTRIES LTD.
- INDIAN HOTELS CO.LTD.
- JSW STEEL LTD.
- LIC HOUSING FINANCE LTD.
- LTIMINDTREE LTD
- MRF LTD.
- NESTLE INDIA LTD.
- NMDC LTD.
- OIL AND NATURAL GAS CORPORATION
- PETRONET LNG LTD.
- SAMVARDHANA MOTHERSON INTERNATIONAL LTD
- STATE BANK OF INDIA
- TATA COMMUNICATIONS LTD.
- TRENT LTD.
- UNION BANK OF INDIA
- VEDANTA LTD
In a T+0 settlement cycle, securities and funds transfer occurs on the same trading day. It operates alongside the existing T+1 settlement cycle in the equity cash market. Shorter settlement cycles enhance market liquidity and reduce risk.
In 2023, the Indian stock market fully transitioned to the T+1 settlement cycle, implemented in three phases.
Previously, SEBI introduced a framework for the optional beta version of the T+0 trade settlement cycle.
Initially, this option would be accessible for a select 25 stocks and a limited number of brokers.
In line with SEBI’s directives, BSE announced the introduction of a beta version of the T+0 settlement cycle starting from March 28, 2024, which falls on Thursday.
The T+0 settlement will be optional for 25 stocks and limited to trades executed between 9:15 am and 1:30 pm.
Trading within the T+0 cycle will adhere to a price band of 100 basis points above or below prices in the T+1 cycle, as per BSE.
Following the introduction of the beta version of T+0 settlement, all charges or fees applicable for T+1 settled securities, including Transaction Charges, STT, and Regulatory/Turnover Fees, will apply to T+0 settled securities, according to BSE.
Market analysts anticipate that implementing the T+0 settlement would improve market efficiency and facilitate the release of funds in the market.
“T+0 settlement would release brokers’ funds within the system, reducing overall business costs. Currently, when a client sells shares, the amount is instantly credited to their trading account, available for further trading. However, this amount is only credited to the broker after T+1 settlement.
With T+0 settlement, funds would be received by 4:30 pm, freeing up brokers’ capital,” explained Shrey Jain, Founder & CEO of SAS Online.
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