BSE to launch beta version of T+0 settlement next week. Check date, other detail


Following guidelines of the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE) has declared to introduce a beta version of the T+0 settlement. The BSE said in a notice on Friday that it will introduce the beta version of the T+0 settlement on 28th March 2024 i.e. on Thursday next week. The BSE said that after the introduction of the beta version of T+0 settlement, all the charges/fees like Transaction Charges, STT, and Regulatory/Turnover Fees that are applicable for T+1 settled security will be applicable for T+0 settled security.

T+0 settlement date

“Trading Members are requested to refer to SEBI Circular no. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated March 21, 2024 Introduction of the Beta version of T+0 rolling settlement cycle on an optional basis in addition to the existing T+1 settlement cycle in Equity Cash Markets. In view of the same, Trading members are requested to note that the Exchange shall introduce trading in securities under the T+0 settlement mechanism with effect from Thursday, March 28, 2024,” the BSE notice said. However, T+0 prices shall not be considered in the Index calculation. T+0 cycle means settlement on the same date.

Framework for T+0 settlement

The BSE also unveiled trading parameters for the beta version of the T+0 settlement, which are as follows:

1] Scrip ID/ Symbol: The Scrip ID shall be the same as that of the corresponding T+ duly security suffixed by the character “#” E.g.: HINDMOTORS#;

2] Group: Same as corresponding T+1 security;

3] Tick Size: Same as corresponding T+1 security;

4] Market Lot: Same as corresponding T+1 security;

5] Order Type: End of Day/Session, Immediate or Cancel (IOC), Market & Limit Order;

6] Order matching: Anonymous order book. Continuous matching with Price – Time priority;

7] Price Band: Price band of +/- 1% (100 Basis points) based on the Close Price of corresponding T+1 settled security, which will be re-calibrated throughout the trading hours after +/- 0.5% (50 basis points) movement in the LTP of corresponding T+1 settled security in the normal market;

8] Eligible Members: All members eligible to trade in the Equity segment;

9] Market Timings: 09:15 hrs to 13.30 hrs;

10] Client code modification window: Till 13:45 Hrs;

11] Eligible Client Type: All types of clients excluding clients settling through custodians;

12] Trading Sessions:

a) One Continuous session from 09:15 hrs to 13.30 hrs.

b) No Pre-open/special pre-open/block/auction/post-close session.

c) Trading in T+0 scrips shall not be available during the settlement holiday.

d) No Trading on the Ex-date of any corporate action in the corresponding T+1 settled security (including scheme of arrangement).

e) Trading in T+0 scrips shall not be available during the Index rebalancing day of corresponding T+1 Security.

What SEBI guidelines say

On Thursday, the capital market regulator SEBI laid guidelines for the beta version of the T+0 settlement saying, “Pursuant to deliberations and approval of the Board, it has been decided to put in place a framework for the introduction of the Beta version of the T 0 settlement cycle on an optional basis in addition to the existing T 1 settlement cycle in the equity cash market, for a limited set of 25 scrips and with a limited number of brokers.”

SEBI went on to add that a shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors, and strengthen risk management at clearing corporations and the overall securities market ecosystem.

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Published: 23 Mar 2024, 07:08 AM IST


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