The BSE will commence beta version of T+0 settlement trading starting March 28, with continuous market hours from 9:15 a.m. to 1:30 p.m., according to a notification. It also stated that fees applicable to T+1 settled securities will apply to T+0 settled ones.
This announcement by the BSE follows SEBI’s establishment of a framework on Thursday to introduce the trial version of the T+0 trade settlement cycle optionally. This choice will be accessible for a restricted selection of 25 stocks and a limited number of brokers.
In addition to the current T+1 settlement cycle in the equity cash market, the BSE will also implement T+0 settlement starting Thursday, March 28, 2024. However, T+0 prices won’t be factored into the Index calculation, as the T+0 cycle involves same-day settlement.
The BSE also outlined the criteria for the trial version of the T+0 settlement:
1] Scrip ID/ Symbol: The Scrip ID will be identical to that of the corresponding T+1 security, with the addition of the “#” character. For example: HINDMOTORS#;
2] Group: This remains the same as the corresponding T+1 security.
3] Tick Size: Identical to the corresponding T+1 security;
4] Market Lot: Matches the corresponding T+1 security;
5] Order Type: End of Day/Session, Immediate or Cancel (IOC), Market & Limit Order;
6] Order Matching: Utilizes an anonymous order book. Orders are continuously matched based on Price – Time priority;
7] Price Band: Set at +/- 1% (100 Basis points) from the Close Price of the corresponding T+1 settled security. This band will be adjusted throughout the trading session following a movement of +/- 0.5% (50 basis points) in the Last Traded Price (LTP) of the corresponding T+1 settled security in the regular market;
8] Eligible Members: All members eligible to trade in the Equity segment;
9] Market Timings: 09:15 hrs to 13:30 hrs;
10] Window for client code modification: Open until 13:45 Hrs;
11] Eligible Client Types: All client types except those settling through custodians;
12] Trading Sessions:
a) Continuous session from 09:15 hrs to 13:30 hrs.
b) No Pre-open/special pre-open/block/auction/post-close session.
c) Trading in T+0 stocks won’t be available on settlement holidays.
d) No Trading on the Ex-date of any corporate action in the corresponding T+1 settled stock (including scheme of arrangement).
e) Trading in T+0 stocks won’t be available on the Index rebalancing day of the corresponding T+1 Security.
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