SEBI's T+0 Settlement Cycle: What It
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
The Move to Instant Settlement in India
India is a global pioneer in clearing and settlement cycles. Following the migration to T+1, SEBI has introduced the optional T+0 settlement cycle for select shares.
What is T+0 settlement?
T+0 settlement means trades are cleared and funds/shares are credited to the investor's bank and demat accounts on the same day the trade is executed, rather than the next day.
Key Benefits
- Faster Capital Turnaround: Sell shares and receive funds instantly for other trades.
- Reduced Counterparty Risk: Immediate trade settlement limits settlement default risks.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.