The list of 25 equities that are eligible for the T+0 settlement cycle starting on March 28 was announced by the BSE on March 27.
The equities that will be eligible for the settlement cycle are Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, BPCL, Cipla, and three Tata Group companies, according to the BSE.
Currently, all equities on Indian exchanges are settled on a T+1 cycle, which implies that an investor’s demat account will show the purchase and sale of shares one day after the transaction.
The capital markets regulator Sebi established a mechanism earlier this month to optionally implement the T+0 trade settlement cycle’s beta version.
This option will first be offered for a restricted set of 25 scrips and with a restricted number of brokers.
This will be on top of the equities cash market’s current T+1 settlement schedule.
A shorter settlement cycle, according to Sebi, will improve risk management at clearing businesses and the securities market ecosystem as a whole, save costs and time, and be transparent in the charges paid to investors.
T+0 would denote same-day settlements. Sebi reduced the settlement cycle from T+5 in 2002 to T+3 in 2003 as part of its endeavor to adapt to the times and fulfill its purpose of developing securities markets and protecting investors.
According to the regulator, any investors who are able to comply with the deadlines, procedures, and risk standards set forth by the market infrastructure institutions will be able to take part in the T+0 settlement cycle.The hours of trade will be 9.15 am to 1.30 pm.
A price band of +100 basis points will separate the price in the T+0 segment from the price in the ordinary T+1 market. Every time the underlying T+1 market moves by 50 basis points, this band will be recalculated.Scrips in the T+0 settlement cycle will be subject to the same surveillance mechanisms that apply in the T+1 settlement cycle.
The regulator said that T+0 prices will not be considered in index calculation and settlement price computation. There will be no separate close price for securities based on trading in the T+0 segment.
Here’s the complete list of 25 scrips:
AMBUJA CEMENTS LTD.
ASHOK LEYLAND LTD.
BAJAJ AUTO LTD.
BANK OF BARODA
BHARAT PETROLEUM CORPORATION LTD
BIRLASOFT LTD
CIPLA LTD.
COFORGE LTD
DIVIS LABORATORIES LTD.
HINDALCO INDUSTRIES LTD.
INDIAN HOTELS CO.LTD.
JSW STEEL LTD.
LIC HOUSING FINANCE LTD.
LTIMINDTREE LTD
MRF LTD.
NESTLE INDIA LTD.
NMDC LTD.
OIL AND NATURAL GAS CORPORATIO
PETRONET LNG LTD.
SAMVARDHANA MOTHERSON INTERNATIONAL LTD
STATE BANK OF INDIA
TATA COMMUNICATIONS LTD.
TRENT LTD.
UNION BANK OF INDIA
VEDANTA LTD
