Facts for Prelims (FFP)
Source: IE
Context: The Securities and Exchange Board of India (SEBI) has proposed a new settlement cycle called T+0, allowing for the clearing and settlement of funds and securities on the same day of the trade, in addition to the existing T+1 settlement cycle.
- The proposal is part of SEBI’s efforts to keep pace with market changes, enhance investor protection, and make the securities markets more efficient.
- Surveillance measures applicable in the T+1 settlement cycle will apply to the T+0 settlement cycle.
It will be implemented in two phases:
| Phase | Description |
| 1 | An optional T+0 settlement cycle is proposed, allowing settlement of funds and securities on the same day by 4:30 PM for trades until 1:30 PM. |
| 2 | An optional immediate trade-by-trade settlement may be implemented in Phase 2, with trading continuing until 3:30 PM. |
