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Following the guidelines of the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE) has declared to introduce a beta version of the T+0 agreement. The BSE said in a statement on Friday that it will introduce the beta version of the T+0 agreement on March 28, 2024, i.e. Thursday next week. The BSE said that after the introduction of beta version of T+0 settlement, all charges/fees like transaction charges, STT and regulatory/billing fees that are applicable for T+1 settled securities will be applicable for settled values T+0. security.
Settlement date T+0
“Trading members are requested to refer to SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated 21 March 2024 Introduction of Beta Version of T+0 rolling settlement on an optional basis in addition to the T+1 settlement cycle existing in cash equity markets. In view of the same, trading members are requested to note that the Exchange will introduce trading of securities under the T+0 settlement mechanism with effect from Thursday, March 28, 2024,” the BSE notice said. However, T+0 prices will not be considered in the calculation of the Index. Cycle T+0 means settlement on the same date.
Framework for T+0 settlement
The BSE also revealed the trading parameters for the beta version of the T+0 deal, which are as follows:
1) Scrip ID/Symbol: The Scrip ID will be the same as that of the corresponding T+ security with the suffix “#” Ex.: HINDMOTORS#;
2) Group: Same as the corresponding T+1 value;
3) Tick size: Same as the corresponding T+1 value;
4) Market Lot: Same as the corresponding T+1 title;
5) Order type: End of day/session, Immediate or Cancellation (IOC), Market and limit order;
6) Matching of orders: Anonymous order book. Continuous Matching with Price – Time Priority;
7) Price band: Price band of +/- 1% (100 basis points) based on the closing price of the corresponding T+1 settled security, which will be recalibrated throughout the trading hours after +/- 0 .5% (50 basis points). points) movement in the LTP of the corresponding T+1 security settled in the normal market;
8) Eligible Members: All members eligible to trade in the equity segment;
9) Market Hours: 09:15 a.m. to 1:30 p.m.;
10) Client code modification window: until 1:45 p.m.;
11) Eligible client type: all types of clients, except clients who settle through custodians;
12) Negotiation Sessions:
a) A continuous session from 09:15 a.m. to 1:30 p.m.
b) There will be no Pre-opening/special pre-opening/block/auction/post-closing session.
c) Trading in T+0 securities will not be available during the settlement holiday.
d) No Trading on the Ex date of any corporate share at the relevant T+1 settled value (including the scheme of arrangement).
e) Trading in T+0 securities will not be available during the rebalancing day of the corresponding T+1 Security Index.
What SEBI guidelines say
On Thursday, capital market regulator SEBI laid down guidelines for the beta version of the T+0 deal saying: “As per the deliberations and approval of the Board, it has been decided to lay down a framework for the introduction of the Beta version of the the T 0 settlement cycle optionally, in addition to the T 1 settlement cycle existing in the spot equity market, for a limited set of 25 securities and with a limited number of brokers.”
SEBI went on to add that a shorter settlement cycle will bring cost and time efficiency, transparency in charges to investors and strengthen risk management in clearing corporations and the overall stock market ecosystem.
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