Market ready to start same-day settlement of trades by March 2024, says SEBI chief

 

SEBI chief Madhabi Puri Buch said on Friday that the capital markets regulator is set to introduce same-day trade settlement on stock exchanges by March 2024.

Speaking at the Global Economic Policy Forum 2023 organized by the Confederation of Indian Industry (CII), she said, "We are ready to start T+0 (T plus zero) settlement trade by the end of the current financial year".

  The regulator, which has already reduced the settlement deadline to one day after the deal, is now looking to shorten it further.

  The SEBI chief has talked about the T+1 system that has been implemented in the market.  Earlier this year, the country's stock markets switched from T+2 to T+1 settlement, settling trades on the next business day.

  "Two things are needed to make this happen. First is technology and second is co-creation. We are now moving towards T+0 which will be before the end of this financial year and after a year we will have instant settlement,  Which is optional. When we do that, the risk in the system is reduced," Buch said here.

  "Two reasons why we bring T+1 to people is the excellent technology - the technology and market stack in India is unmatched and it is considered the best in the world. The other is co-creation with the organization and a set of rules with them.  Making,” he said.