T+O settlement cycle finds few takers in initial phase

Sebi may launch revised framework in November

- KHUSHBOO TIWARI

Market regulator Securities Exchange Board of India's (Sebi's) experiment with the same-day settlement cycle has found few takers during its soft launch phase, rolled out for just 25 stocks.

Since its introduction in March, the T+O mechanism - an optional settlement cycle, parallel to the mainstream T+1 cycle where trades are settled on a next-day basis - has logged a turnover of just 5.7 lakh on the NSE, with six of the 25 scrips not recording even a single trade. Of the total, over 80 per cent, or ₹4.63 lakh, was registered on March 28, the launch day.

The turnover for T+0 trades on the BSE is even lower at under ₹3 lakh.

According to industry sources, Sebi plans to launch a revised framework, aiming at wider implementation and adoption, in November.

Industry players said the move to T+0 came close on the heels of the T+1 rollout. So, it didn't gain wider acceptance despite its benefits.