If you also trade in the stock market, then this news can be of great use to you. Actually, SEBI is going to implement a new rule from March 31 next year. As soon as this rule is implemented, the rules of buying and selling shares will change completely. SEBI has decided to increase the list of shares for the option T + 0 mode of trading and settlement to include 500 more shares from January 31. Currently, T + 0 settlement cycle is only for 25 selected shares. These include shares of SEBI, ONGC and Bajaj Auto. Let us tell you that this system was started in March this year. SEBI is preparing to expand it in the new year.
According to SEBI’s circular, the system will be implemented according to market cap
- This process will start from January 31, 2025
- In the first phase, the top 500 stocks will be selected according to market cap on December 31
- In the first phase, T+0 settlement will be available in the last 100 stocks out of 500
- Then every month the next lower 100 stocks will be added to the list
- Under the T+0 settlement system, investors will get their shares and funds in the evening of the same day on which they have done their trading
- India is the first country to do this in the stock market
- T+1 process of settlement is still prevalent in other countries around the world and in India as well
T+0 settlement system will be allowed to offer
SEBI said that “all brokers will be allowed to offer the T+0 settlement system to their customers. Actually, T+1 settlement Under the system, the buyer and seller of shares receive them in their demat account and the money in their bank account a day after the trade.”
What is the T+0 settlement?
- There is no delay in this
- The day you buy the shares, the shares will come to your demat account
- The day you sell the shares, you will get the payment on the same day
- It was first implemented by SEBI in March 2024
- It was earlier implemented for only 25 shares
- According to the market cap, now it will be implemented for the next 500 shares
- T+0 settlement simply means the process of buying or selling shares happens in a single day
What is the settlement system of T+1 and T+2
If we understand it in simple language, then the T+1 settlement system means that the day you sell or buy the shares, its payment and ownership of the shares used to be received by you the next day. And in the T+2 settlement system, the day you sell or buy shares, you get the payment and ownership of the shares after two working days.
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What will be the option?
- Currently, the T+1 settlement system is applicable in the Indian stock market
- Now you will have the option to select either T+0 or T+1 settlement system
- The T+2 system runs in major stock markets around the world
When was the T+1 settlement system implemented?
- The T+1 settlement system was implemented in the Indian stock market on January 27, 2023
- Earlier, the T+2 rule was applicable in the Indian market like other markets
- Before the launch of the National Stock Exchange (NSE) in 1994, the settlement process was done once in two weeks in BSE
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