NEW DELHI : Shares of prominent firms such as Ambuja Cements, Bajaj Auto, Cipla, SBI, and Vedanta are among 25 stocks that will be eligible for the T+0 or Trade + 0 settlement cycle from Thursday, showed data released by the BSE on Wednesday.
Other stocks which will go live in beta version of the T+0 settlement cycle are Ashok Leyland, Bank of Baroda, Bharat Petroleum Corporation, Birlasoft, Coforge, Divis Lab, Hindalco Industries, Indian Hotels, JSW Steel, LIC Housing Finance, LTI Mindtree, MRF, Nestle India, NMDC, ONGC, Petronet LNG, Samvardhana Motherson International, Tata Communications, Trent and Union Bank of India. In T+0 settlement cycle, trades will be settled on same day they are made, unlike current T+1 settlement system where payment is received the next day.
The beta launch, approved by capital market regulator SEBI earlier this month, will initially include 25 stocks and a limited number of brokers. T+0 settlements will be only for trades executed between 09:15 a.m. to 01:45 p.m. SEBI in September 2021 had introduced the T+1 rolling settlement cycle. All stock exchanges, clearing corporations and depositories jointly decided to shift to T+1 settlement cycle in a phased manner, which was fully implemented on January 27, 2023.
According to SEBI, then surveillance measures as applicable in the T+1 settlement cycle will be applicable to scrips in the T+0 settlement cycle. Further, T+0 prices will not be considered in index calculation and settlement price computation.
Samir Shah, head of online business at Axis Securities, said in the current T+1 system, sellers can only access 80% of their funds on the sell day while waiting until the next day to receive remaining 20%. “However, with new T+0 settlement system, sellers will have access to 100% of their funds on the same day of trade. This development will increase liquidity for investors, allowing them to quickly enter into other trades without losing out on investment opportunities due to waiting periods. Additionally, the new system will reduce counterparty default risks,” added Shah.