Question: A friend told me that since some stocks on the Indian stock market are now eligible for same-day settlement, T+1 settlement has effectively been phased out and I should expect all my trades to settle on the same day I place them. Should I plan my cash flows around this?
Answer: No, you should not assume same-day settlement across the board. SEBI introduced an optional, beta-stage T+0 (same-day) settlement cycle for a limited and gradually expanding list of eligible securities and brokers, running in parallel with, not replacing, the mandatory T+1 settlement cycle that continues to apply to the equity market as a whole. Unless your specific trade is executed within the T+0 window on an eligible security through a participating broker, you should continue to plan around T+1 settlement timelines.

Supporting evidence:
title: sebi.gov.in/enhancement-in-the-scope-of-optional-t-0-rolling-settlement-cycle-in-addition-to-the-existing-t-1-settlement-cycle-in-equity-cash-markets_89443.html
quote: SEBI vide Circular No.SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated March 21, 2024 introduced the beta version of T+0 rolling settlement cycle on optional basis in addition to the existing T+1 settlement cycle in Equity Cash Markets, for a limited set of 25 scrips and with a limited number of brokers
context: SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/172
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Sir/ Madam

Subject: Enhancement in the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets

1. SEBI vide Circular No.SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated March 21, 2024 introduced the beta version of T+0 rolling settlement cycle on optional basis in addition to the existing T+1 settlement cycle in Equity Cash Markets, for a limited set of 25 scrips and with a limited number of brokers.
2. In order to enable smooth implementation and avoid any disruptions in the implementation of beta version of optional T+0 settlement cycle, the mechanism was enabled only for non-custodian clients with effect from March 28, 2024.
3. Based on the feedback received from various stakeholders to increase the efficiency of optional T+0 settlement cycle and approval of the Board, it has been decided to enhance the scope of optional T+0 settlement cycle, with the following measures:
4. 3.1. Increase in number of eligible scrips for trading under optional T+0 settlement cycle:
5. Page 1 of 4 3.1.1. Optional T+0 settlement cycle shall be made available to top 500 scrips in terms of market capitalization as on December 31, 2024. The scrips shall be made
December 10, 2024
available for trading and settlement starting with scrips at bottom 100 companies out of the aforesaid 500 companies and gradually include the next bottom 100 companies every month till top 500 companies are available for trading in optional T+0 settlement cycle.
- 3.1.2. The above list of scrips shall be in addition to the existing 25 scrips available for trading and settlement under the Beta version of optional T+0 settlement cycle.
- 3.2. Participation by all Stock Brokers: All stock brokers are allowed to participate in the optional T+0 settlement cycle. Stock Brokers are permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within the regulatory limit.

3.3. Participation by Qualified Stock Brokers (QSBs):

- 3.3.1. 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.
- 3.3.2. In case of change in the list of QSBs, the