SEBI introduces T+1 Settlement System

On 7th September 2021, the Securities and Exchange Board of India (SEBI) allowed stock exchanges to start the T+1 system as an option in place of T+2, in a move to enhance market liquidity.

  • The new mechanism will come into force on January 1, 2022.
  • Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done (T+2).
  • Earlier in 2002, the capital markets regulator had cut the number of days in the settlement cycle from T+ 5 days to T +3 days, and then in 2003, it was reduced to T+ 2 days.

About T+1 ....

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