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T+1 Settlement Cycle To Protect Investors' Interests: SEBI Chief

SEBI chairman Ajay Tyagi has mentioned that T+1 settlement cycle will defend traders’ pursuits

Securities and Trade Board of India (SEBI) chief Ajay Tyagi has mentioned that the choice to implement the commerce plus one (T+1) settlement cycle in a phased method starting February 2022 will go a good distance in defending traders’ curiosity.

Other than this, the markets regulator has taken numerous regulatory measures within the current previous in direction of investor safety, he mentioned at a operate on the India Worldwide Commerce Honest.

These measures included introduction of upfront margin framework, risk-o-meter, e-KYC and safety of consumer collateral by pledge-repledge mechanism, Mr Tyagi added.

“The choice to implement T+1 (commerce plus one) settlement in a phased method starting February 2022 will go a good distance in defending traders’ curiosity,” he mentioned.

T+1 implies that market trade-related settlements will have to be cleared inside at some point of the particular transactions happening. At the moment, trades on the Indian inventory exchanges are settled in two working days after the transaction is finished (T+2).

The inventory exchanges – NSE and BSE – earlier this month introduced that they’ll implement the T+1 settlement cycle in a phased method beginning February 25, with the underside 100 shares by way of market worth.

Thereafter, 500 shares shall be added primarily based on the identical market worth standards from the final Friday of March and so forth each following month.

The announcement got here after SEBI in September permitted inventory exchanges to introduce T+1 settlement cycle from January 1, 2022 on any of the securities accessible within the fairness section.

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