BSE and its clearing arm Indian Clearing Corporation Limited (ICCL) on Thursday announced the successful launch of the beta version of T+0 settlement. The beta version is implemented to ensure the smooth functioning of the shorter settlement cycle before its full-fledged launch. The beta version offers an option for investors to transact in 25 securities in T+0 settlement.
“Designed to settle trades on the same day they are executed, the T+0 settlement facilitates quicker receipt of funds and securities in investor accounts thereby reducing the risks associated with the time lag,” BSE India said in a statement.
The T+0 settlement stands as an attempt across the globe and this rollout involved active collaboration between Regulators, Exchanges, Clearing Corporations, Depositories, and the member community at large. On the first day, 63 members participated in this optional segment, it said, adding that as many as 41 members traded in 10 scrips and placed a total of 329 orders which resulted into 90 trades. Unique investors using this facility stood at 49.
Commenting on the launch, Sundararaman Ramamurthy, Managing Director and Chief Executive Officer at BSE, said, “We are pleased to inform the successful implementation of the first T+0 settlement cycle today (28 March 2024). This is a significant step towards greater efficiency and reduced risk in our market. We are confident that this optional settlement cycle will contribute to the continued growth and development of the capital markets in India.”