InvestorQ : Are stock exchanges launching T+1 officially in February and is it mandatory or voluntary?
prachi Patwardhan made post

Are stock exchanges launching T+1 officially in February and is it mandatory or voluntary?

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sara Kunju answered.
4 weeks ago
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Both the principal stock exchanges, the NSE and the BSE, will usher in T+1 settlement cycle in phases from 25-Feb 2022. In the first phase a list of about 100 stocks from the bottom of the market cap heap will be added to the T+1 group. Of course, this will only be the eligibility but the shift to T+1 would still be only on voluntary basis and the companies will have to opt for that T+1 facility.

Effective from Mar-22, every month SEBI will progressively move 500 stocks by market cap to the T+1 settlement mode. This will give the companies, markets and the back-office systems enough time to adapt to the change. Interestingly, the large Asian markets are still on T+2 settlement while Taiwan had shifted to T+1 but soon reverted to T+2. FPIs have objected to this shift citing time zone differences as a major constraint to hedging.

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