BSE announces T+0 settlement for 25 stocks including SBI, Bajaj Auto

T+0 settlement: The Bombay Stock Exchange (BSE) has announced 25 stocks, including Bajaj Auto, Bharat Petroleum, and State Bank of India, are now eligible for optional same-day (T+0) settlement, effective March 28.

Currently, markets operate on a T+1 settlement cycle, where transactions reflect in investors' demat accounts one day after the trade. The introduction of the new T+0 settlement cycle aims to mitigate transactional risks and bolster market efficiency by providing immediate liquidity to investors.

Analysts at ICICI Direct anticipate that implementing T+0 settlement could lead to increased trading opportunities and reduced settlement risks for investors.

The T+0 settlement will be optional for the designated 25 stocks and will be applicable only for trades executed between 9:15 am and 1:30 pm, as per the Securities and Exchange Board of India (SEBI)'s circular issued on March 21.

SEBI clarified that prices in T+0 will not factor into index calculation or computing settlement prices of shares.

To prevent market distortions arising from price discrepancies between settlement cycles, BSE stipulated that trading in the T+0 cycle will be subject to a price band of 100 basis points above or below prices under the T+1 cycle.

(With Reuters inputs)