CIRCULAR
SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 March 21, 2024
All Recognized Stock Exchanges
All Recognized Clearing Corporations
All Depositories
Dear Sir/ Madam
Subject: 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 07,
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.
Page 1 of 4
4. Accordingly, based on the recommendations of Working Group consisting of MIIs,
public comments, and recommendations of Risk Management Review Committee of
SEBI, a proposal on introduction of optional T+0 settlement and subsequent optional
Instant Settlement, in addition to the existing T+1 settlement cycle was placed before
SEBI Board for approval.
5. Pursuant to deliberations and approval of the Board, it has been decided to put in
place a framework for introduction of the Beta version of T+0 settlement cycle on
optional basis in addition to the existing T+1 settlement cycle in equity cash market,
for a limited set of 25 scrips and with a limited number of brokers.
6. The operational guidelines in this regard are as under:
a. Eligible Investors: All investors are eligible to participate in the segment for T+0
settlement cycle, if they are able to meet the timelines, process and risk
requirements as prescribed by the MIIs.
b. Surveillance Measures: The surveillance measures as applicable in T+1
settlement cycle shall be applicable to scrips in T+0 settlement cycle.
c. Trade Timings: One continuous trading session from 09:15 AM to 1:30 PM.
d. Price Band: The price in the T+0 segment will operate with a price band of +100
basis points from the price in the regular T+1 market. This band will be re-calibrated
after every 50 basis points movement in the underlying T+1 market.
e. Index calculation and settlement price computation: T+0 prices will not be
considered in index calculation and settlement price computation. There shall be
no separate close price for securities based on trading in T+0 segment.
Page 2 of 4
f. Netting of Obligations: There shall be no netting in pay-in and pay-out obligations
between T+1 and T+0 settlement cycle.
7. To ensure smooth implementation, the MIIs shall publish other operational guidelines
(including mechanism for trading, clearing and settlement, risk management, etc.) and
Frequently Asked Questions (FAQs) along with the list of 25 scrips for the Beta version
of T+0 settlement cycle and disseminate the same on their respective websites.
8. On periodic basis, MIIs shall disseminate the list of brokers that are participating in the
Beta version of T+0 settlement cycle on their websites.
9. MIIs shall provide a fortnightly report on the progress of activities in the Beta version
of T+0 settlement cycle till further direction.
10. The provisions of this circular shall come into force with effect from March 28, 2024.
11. SEBI shall continue to do further stakeholder consultation including with users of the
Beta version of T+0 settlement cycle.
12. All MIIs are advised to:
a. take necessary steps and put in place necessary systems for implementation of
the above;
b. make necessary amendments to the relevant bye-laws, rules and regulations,
wherever required, for the implementation of the above; and
c. bring the provisions of this circular to the notice of market participants (including
investors) and also to disseminate the same on their websites;
Page 3 of 4
13. This circular is issued in exercise of the powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act 1992, read with Regulation 51 of the
Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations)
Regulations, 2018, Section 26(3) of the Depositories Act, 1996 and Regulation 97 of
Securities and Exchange Board of India (Depositories and Participants) Regulations,
2018 to protect the interests of investors in securities and to promote the development
of, and to regulate the securities market.
14. This circular is available on SEBI website at www.sebi.gov.in at “Legal Framework -
Circulars”.
Yours faithfully,
Hruda Ranjan Sahoo
Deputy General Manager
Market Regulation Department
Tel. No.: 022-26449586
E-mail: hrsahoo@sebi.gov.in
Page 4 of 4