SEBI is preparing to implement same-day settlement of trades, commonly referred to as T plus zero (T+0) settlement, by the end of the current financial year. Currently trades are settled in “T+1” or one day after the trades are initiated. T+0 would mean settlements in the same day and instant settlement would ensure trades are settled immediately.
Madhabi Puri Buch, Chairperson of SEBI said at the Global Economic Policy Forum that maybe in January or February, we will have ASBA for the secondary market. “It sits in your account, you will earn 4 percent on it, and only when the trade happens the money will be debited”. India is set to become the second country after China to operate on a short settlement cycle of one day. In most other major economies, trade settlement is typically completed within two days.
