CIRCULAR
SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/172 December 10, 2024
All Recognized Stock Exchanges
All Recognized Clearing Corporations
All Depositories
All Qualified Stock Brokers
All Custodians
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:
3.1. Increase in number of eligible scrips for trading under optional T+0 settlement
cycle:
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
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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 exiting QSB shall continue to provide
the necessary systems and process and the new QSBs shall put in place the
necessary systems and processes for enabling seamless participation of
investors in optional T+0 settlement cycle within 3 months from the date of
updation of the list.
3.4. Participation by Custodians: The Stock Exchanges, Clearing Corporations and
Depositories (collectively referred as Market Infrastructure Institutions (MIIs));
and Custodians shall put in place necessary systems and processes for
seamless participation of institutional investors in optional T+0 settlement cycle.
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3.5. Block Deal window in T+0 settlement cycle:
3.5.1. A mechanism for Block Deal window shall be put in place by the Stock
Exchanges under the optional T+0 settlement cycle. The Block Deal window
under the optional T+0 settlement cycle shall be available only for the morning
session during 8:45 am to 9:00 am in addition to the existing Block Deal
windows of 8:45 am to 9:00 am and 2:05 pm to 2:20 pm for T+1 settlement
cycle. The trades in optional T+0 block window session will be settled on T+0
settlement cycle.
3.5.2. Participation under this window shall be optional for the investors.
4. To ensure smooth implementation, the MIIs shall publish the operational guidelines
(including mechanism for trading, clearing and settlement, risk management, etc.)
and Frequently Asked Questions (FAQs) along with the list of eligible scrips and
list of QSBs for the optional T+0 settlement cycle and disseminate the same on
their respective websites.
5. MIIs shall provide a fortnightly report on the activities under optional T+0 settlement
cycle till further direction.
6. Applicability:
6.1. The provisions at paragraphs 3.1, 3.2, 4 and 5 above shall be applicable with
effect from January 31, 2025.
6.2. The provision at paragraphs 3.3, 3.4 and 3.5 above shall be applicable with effect
from May 01, 2025.
6.3. Paragraph 5 of SEBI Circular dated March 21, 2024 shall stand modified and
paragraphs 7, 8 and 9 of SEBI Circular dated March 21, 2024 shall be rescinded,
with effect from January 31, 2025.
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6.4. All other provisions of SEBI circular dated March 21, 2024 shall remain
applicable.
7. All MIIs are advised to:
7.1. take necessary steps and put in place necessary systems for implementation of
the above;
7.2. make necessary amendments to the relevant bye-laws, rules and regulations,
wherever required, for the implementation of the above; and
7.3. bring the provisions of this circular to the notice of market participants (including
investors) and also to disseminate the same on their websites;
8. 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.
9. 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
Ph. No: 022-26449586
E-mail: hrsahoo@sebi.gov.in
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