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The Tax Publishers SEBI--Circular Circular No. SEBI/HO/MRD/MRD-POD-3/P/CIR/2024/20, dtd. 21-3-2024 Introduction of Beta Version of T+0 Rolling Settlement Cycle on Optional Basis in Addition to The Existing T+1 Settlement Cycle in Equity Cash Markets 1. SEBI vide Circular No. SEBI/HO/MRD2/DCAP/P/CIR/2021/628, dated September 7, 2021 allowed for introduction of T+1 rolling settlement cycle. All stock exchanges, clearing corporations and depositories (collectively referred to as "Market Infrastructure Institutions (MIIs)") jointly decided to shift to T+1 settlement cycle in a phased manner, which was fully implemented w.e.f. January 27, 2023. 2. The significant evolution of technology, architecture and capacity of MIIs, presents opportunities for further advancing clearing and settlement timelines. Further, India's depository ecosystem has visibility of individual client level holdings in digital form, and so has the ability to effect immediate transfer of securities and also India's payments and settlements ecosystem has long allowed for real time transfer of funds. 3. A shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors and strengthen risk management at clearing corporations and the overall securities market ecosystem. SUBSCRIBE FOR FULL CONTENT

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SEBI--Circular

Circular No. SEBI/HO/MRD/MRD-POD-3/P/CIR/2024/20, dtd. 21-3-2024

Introduction of Beta Version of T+0 Rolling Settlement Cycle on Optional Basis in Addition to The Existing T+1 Settlement Cycle in Equity Cash Markets

1. SEBI vide Circular No. SEBI/HO/MRD2/DCAP/P/CIR/2021/628, dated September 7, 2021 allowed for introduction of T+1 rolling settlement cycle. All stock exchanges, clearing corporations and depositories (collectively referred to as "Market Infrastructure Institutions (MIIs)") jointly decided to shift to T+1 settlement cycle in a phased manner, which was fully implemented w.e.f. January 27, 2023.

2. The significant evolution of technology, architecture and capacity of MIIs, presents opportunities for further advancing clearing and settlement timelines. Further, India's depository ecosystem has visibility of individual client level holdings in digital form, and so has the ability to effect immediate transfer of securities and also India's payments and settlements ecosystem has long allowed for real time transfer of funds.

3. A shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors and strengthen risk management at clearing corporations and the overall securities market ecosystem.