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BSE announces a list of 25 stocks eligible for t+0 trade settlement

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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:

  1. AMBUJA CEMENTS LTD.
  2. ASHOK LEYLAND LTD.
  3. BAJAJ AUTO LTD.
  4. BANK OF BARODA
  5. BHARAT PETROLEUM CORPORATION LTD
  6. BIRLASOFT LTD
  7. CIPLA LTD.
  8. COFORGE LTD
  9. DIVIS LABORATORIES LTD.
  10. HINDALCO INDUSTRIES LTD.
  11. INDIAN HOTELS CO.LTD.
  12. JSW STEEL LTD.
  13. LIC HOUSING FINANCE LTD.
  14. LTIMINDTREE LTD
  15. MRF LTD.
  16. NESTLE INDIA LTD.
  17. NMDC LTD.
  18. OIL AND NATURAL GAS CORPORATION
  19. PETRONET LNG LTD.
  20. SAMVARDHANA MOTHERSON INTERNATIONAL LTD
  21. STATE BANK OF INDIA
  22. TATA COMMUNICATIONS LTD.
  23. TRENT LTD.
  24. UNION BANK OF INDIA
  25. 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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