From Thursday onwards, 25 stocks including Bajaj Auto, SBI, Vedanta, and Trent will be eligible for the T+0 settlement cycle, a move anticipated to boost market liquidity and efficiency.

What Happened: As per a BSE notification on Wednesday, a total of 25 stocks will be available for the T+0 settlement cycle from Thursday. This list includes significant names such as Bajaj Auto, State Bank of India, Vedanta, and Trent among others.

The T+0 settlement cycle enables the transfer of securities from the seller to the buyer on the same day of the transaction. This initiative is expected to enhance liquidity and efficiency in the market.

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What Is T+0: The T+0 settlement, which refers to the process of settling trades on the same day, means that the seller of stocks will receive money on the day of sale instead of the earlier T+1. This move was announced by SEBI Chairperson Madhabi Puri Buch.

The market regulator has proposed the introduction of T+0 settlement in two phases for the equity cash segment, alongside the existing T+1 settlement cycle, providing traders with shorter settlement options.

In Phase 1, an optional T+0 settlement cycle for trades executed until 1:30 pm is envisioned, with both funds and securities settlement expected to be completed on the same day by 4:30 pm.

Phase 2 introduces an optional immediate trade-by-trade settlement, allowing trading until 3:30 pm. Following the implementation of Phase 2, the optional T+0 settlement mechanism introduced in Phase 1 will be discontinued.

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