India’s market regulator proposes phased implementation of same-day settlement plan

MUMBAI (Reuters) – India’s market regulator has proposed a plan for a phased rollout of optional same-day settlement and has sought views from the public before it finalises the rules.

Under the first phase of the plan, known as T+0 in marketspeak, trading in securities until 1.30 p.m. IST will be settled by 4.30 p.m., the Securities and Exchange Board of India (SEBI) said in a consultation paper released on Friday.

For the second phase, the plan proposes immediate trade-by-trade settlement for the full trading day till 3.30 pm.

The regulator has also proposed offering same-day settlement for top 500 listed shares by market capitalisation.

The plan would be offered to investors across categories, although clients settling through their custodians would be excluded in the first phase, the regulator said.

Although the SEBI did not specify when the plan would be implemented, regulatory officials had previously said that it would be effective before the end of the current fiscal year in March and that India would move to instantaneous settlement a year later.

(Reporting by Ira Dugal)