On January 27, T+1 settlement is scheduled to launch on the NSE and BSE of India. The market will have more liquidity as the settlement cycle is shortened to T+1, and as a result, buyers and sellers will be able to receive shares and corporate actions like dividends and bonus shares in their accounts one day after the market closes.
All large-cap and blue-chip companies will switch to the T+1 system on January 27. Previously, in 2003, SEBI (Securities Exchange Board of India) reduced the settlement period from T+3 days to T+2 days and hence the decision to switch to T+1 settlement has been made 20 years after the Indian market switched the settlement phase from T+3 to T+2 settlement cycle on April 1, 2003.
“To bring in operational efficiency and ease for market participants, it has been now decided that all stocks on which derivatives contracts are available will be transitioned to T+1 settlement in a single batch i.e., in January 2023 instead of two separate batches. Accordingly, Exchanges will revise the original schedule for transition of stocks to T+1 settlement and issue the circular informing the list of stocks to be transitioned in December 2022 and January 2023,” a statement reads.
India’s First Private Market Benchmark. Providing institutional clarity to the unlisted securities market.