SEBI Settlement Cycle: After a long demand to reduce the settlement cycle, today NSE and BSE will start T + 1 settlement system for the investors in the stock market from today.
Mumbai. (Pushpendra Kumar): NSE and BSE will start T + 1 settlement system for investors in the stock market from today. Now investors will be paid within a day of selling the shares. Also, if investors buy shares, then the shares will also come in their account within 24 hours. Earlier, when buying or selling shares, the transaction was settled within two days.
Phase wise system will be implemented
NSE and BSE had issued a press release in November stating that they would implement the T+1 settlement cycle phase wise. Under the first phase, today this system will be applicable on the bottom 100 stocks in terms of MARKET VALUE. The second phase will start on the last Friday of March. In the second phase, keeping in mind the market value criteria, this system will be applicable on 500 stocks. Similarly, this process will continue every month till all the stocks are included in it.
India first country to implement T+1 settlement system
According to JN Gupta, former executive director of SEBI, India is the first country where T + 1 settlement system will be implemented. This will also reduce the risk of investors on investment. Also their share and their waiting for money.
SEBI has already shortened the settlement cycle
Even before this, SEBI has shortened the settlement cycle. In 2002, the settlement cycle was reduced from 5 days to 3 days. After that in 2003 it was reduced from 3 days to 2 days.
There was a demand to reduce the settlement cycle
Let us tell you that many such requests were coming to the market regulator SEBI, in which there was a demand to reduce the settlement cycle. Keeping these requests in mind, SEBI has prepared a new rule. SEBI has issued a circular stating that after discussions with market infrastructure institutions such as stock exchanges, clearing corporations and depositors, it has been decided that the stock exchange will have the facility to settle in T+1 or T+2 settlement cycle. Make any offer from
