SEBI Sets Ambitious Timeline for Same-Day and Real-Time Settlement in Capital Markets

Sebi Sets March 2024 Deadline for Same-Day Stock Settlement, Eyes Real-Time Trades

Mumbai, 25 November: The Securities and Exchange Board of India (Sebi) is gearing up to revolutionize stock market trading by aiming to implement same-day settlement of trades on stock exchanges by March 2024. Chairperson Madhabi Puri Buch announced the regulatory body’s ambitious plans, indicating a subsequent move towards achieving real-time settlement in the capital markets.

Sebi has already made significant strides in reducing settlement timelines, currently set as short as one day. Chairperson Buch expressed Sebi’s vision, stating, “Sebi wants the T plus zero (T+0) settlement norm to be in place from March-end 2024 and T plus instantaneous settlement 12 months from thereon.”

This groundbreaking move, if executed as planned, would potentially streamline and expedite trading processes, significantly reducing the time gap between trade execution and settlement. Real-time settlement mechanisms hold the promise of enhancing market efficiency and reducing risks associated with delayed settlements.

Following the recent board meeting, Buch highlighted Sebi’s commitment to fostering a more dynamic and efficient market ecosystem. The proposed timeline reflects Sebi’s proactive approach to leveraging technology and regulatory reforms to propel the Indian capital markets into a new era of faster and more secure trade settlements.

The introduction of same-day settlement and eventual real-time settlement signifies a pivotal shift in market dynamics, potentially reshaping the landscape for traders, investors, and market participants. However, the successful implementation of these ambitious goals will require comprehensive infrastructure, technological readiness, and regulatory frameworks, aspects that Sebi aims to address in its strategic roadmap towards achieving these milestones.

Comments are closed.