InvestorQ : How do you see the impact of the SEBI shifting to T+1 rolling settlement for stocks?
Arti Chavan made post

How do you see the impact of the SEBI shifting to T+1 rolling settlement for stocks?

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Rutuja Nigam answered.
3 months ago
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On 07th September, SEBI announced the introduction of optional T+1 rolling settlement. This will be effective from 01st Jan 2022. Exchanges will have the discretion of which stocks they want to offer T+1 rolling settlements. However, stocks that are moved into T+1 cannot be netted off against stocks on T+2 basis. This could create a problem for brokers but that should get addressed as an increasing number of stocks are shifted to T+1 cycle.

The announcement came after SEBI received requests from stakeholders to shorten the cycle. This will reduce the risk in the market, make the market more liquid, reduce the lock-in of funds and also align with the F&O products which follow T+1 cycle. To begin with both the T+1 and T+2 cycles will co-exist on the exchanges. Exchanges will have to give 1 month notice for any shift and once the shift is done, it stays for at least 6 months.

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