The BSE stated that all fees and charges, such as Transaction Charges, STT, and Regulatory/Turnover Fees, that are applicable for T+1 settled securities will also apply to T+0 settled securities following the launch of the beta version of T+0 settlement.
T+0 settlement date
“Trading Members are requested to refer to SEBI Circular no. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated March 21, 2024 Introduction of the Beta version of T+0 rolling settlement cycle on an optional basis in addition to the existing T+1 settlement cycle in Equity Cash Markets. In view of the same, Trading members are requested to note that the Exchange shall introduce trading in securities under the T+0 settlement mechanism with effect from Thursday, March 28, 2024,” the BSE notice said.
However, T+0 prices shall not be considered in the Index calculation. T+0 cycle means settlement on the same date.
Framework for T+0 settlement
Additionally, the BSE disclosed the following trading parameters for the T+0 settlement beta:
1] Scrip ID/Symbol: The Scrip ID must match the associated T+ properly secured by the character “#,” for example, HINDMOTORS#;
2] Group: Equivalent to the T+1 security in question;
3] Tick Size: Equivalent to the T+1 security;
4] Market lot: same to the T+1 security in question;
5] Type of Order: Market & Limit, Immediate or Cancel (IOC), End of Day/Session;
6] Anonymous order book for order matching. constant balancing of price and time priorities;
7] Price Band: based on the Close Price of the relevant T+1 settled security, a price band of +/- 1% (100 Basis points) will be determined; this will be adjusted during trading hours following a movement of +/- 0.5% (50 Basis points) in the LTP of the corresponding T+1 settled securities in the regular market;
8. Members Eligible: Every member qualified to trade in the Equity section;
9] Market hours are from 09:15 to 13:30.
10] Window for changing client code: until 13:45;
11] Kind of Eligible customer: Any kind of customer, with the exception of those who settle through custodians;
12] Dealing Days:
a) One uninterrupted session lasting from 9:15 to 13:30.
b) No block, auction, post-close session, special pre-open, or pre-open.
c) During the settlement holiday, there will be no trading in T+0 scrips.
d) No trading in the related T+1 settled securities (including scheme of arrangement) on the Ex-date of any corporate action.
e) During the index rebalancing day of the related T+1 Security, trading in T+0 scrips will not be available.
What SEBI guidelines say
In a statement released on Thursday, the capital market regulator SEBI stated, “Pursuant to deliberations and approval of the Board, it has been decided to put in place a framework for the introduction of the Beta version of the T 0 settlement cycle on an optional basis in addition to the existing T 1 settlement cycle in the equity cash market, for a limited set of 25 scrips and with a limited number of brokers.” The guidelines pertain to the beta version of the CME settlement.
SEBI continued by saying that a shorter settlement cycle will improve risk management at clearing businesses and the securities market ecosystem as a whole, as well as save money and time.
