“We will keep it optional and are neutral about it,” he stated, indicating that SEBI will monitor how the system adapts and whether investors find it suitable.
Challenges for FPIs with T+0 settlements
Pandey also acknowledged that foreign portfolio investors (FPIs) face multiple procedural challenges with T+0 settlements, which could impact adoption rates.
T+0 settlement, where trades are executed and settled on the same day, aims to enhance liquidity and efficiency in the market by ensuring instant transaction completion.
The capital markets regulator on Tuesday, April 29 extended the timeline for implementation of the optional T+0 rolling settlement cycle for qualified stock brokers (QSBs) to November 1.
SEBI’s circular on T+0 settlements
Earlier, the deadline for operational readiness as mandated under the SEBI’s December 10, 2024, circular was May 1, 2025.
The extension came after SEBI received feedback from QSBs and subsequent consultations with stock exchanges, clearing corporations, depositories and the brokers themselves.
“In order to ensure smooth implementation, it has been decided to extend the timeline for QSBs for putting in place the necessary systems and processes for enabling seamless participation of investors in the optional T+0 settlement cycle to November 1, 2025,” as per a SEBI circular.
SEBI’s earlier framework said, “stock brokers who are designated as QSBs and meet the parameter of minimum number of active clients for qualification as QSB as on December 31, 2024 shall put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle”.
SEBI deadline for QSBs
Further, new QSBs have three months to adopt these systems after any list updates.
While extending the deadline, the regulator clarified that all other provisions of the December 10, 2024, circular will remain unchanged.
In December last year, SEBI expanded the optional T+0 (same day) settlement in the equity cash market to the top 500 scrips by market capitalisation.
The Securities and Exchange Board of India (SEBI) introduced an optional T+0 settlement cycle for 25 scrips in March 2024. Initially, it was available only to non-custodian clients.
