SEBI Announces New Settlement Rules for Share Transactions

  • The Securities and Exchange Board of India (SEBI) has introduced new rules impacting how quickly shares are settled after a trade.
  • Currently, India operates on a T+1 settlement cycle, meaning trades are settled the next business day.
  • SEBI's proposal offers an optional T+0 settlement alongside the existing T+1 option.
  • T+0 allows for immediate transfer of funds and securities on the same day of the trade.
  • This could benefit shareholders by providing faster access to funds and potentially greater control over their holdings.
  • However, the impact of this new option remains to be seen, and some experts advise caution until the system is fully implemented.

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