SEBI getting ready to introduce T+0 settlement trade by end of March 2024: Madhabi Puri Buch

According to the SEBI chief, market markers are of the view that it makes better sense to move directly from T+1 hour to T+instantaneous as there is no benefit to be drawn from the middle ground which is T+0. Buch had said that SEBI is "fully open" to the suggestions made by the market makers on instantaneous settlement of trades.

The Indian stock market has moved to T+1 settlement, where trades are settled the next business day, earlier in January 2023. Previously, it was T+2 system.

"The changes from T+2 to T+1 and T+ 1 hour have been eventless from an infrastructure point of view," the investment banker-turned-regulator had said earlier.

In July 2023, Madhabi Puri Buch had announced that SEBI was aiming to introduce instantaneous settlement of trades on the stock exchanges by the end of March 2024. Later, in September, SEBI official said the regulator will introduce one-hour trade settlements by the end of this fiscal, in the run-up to making such processes instantaneous.

Trade settlement is the process of transferring securities and funds between buyers and sellers after a trade is executed. The shorter the settlement cycle, the faster investors can access the securities and funds.