T+0 SETTLEMENT: HOW IT IMPACT INVESTORS AND TRADERS ?

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                    As of now, NSE and BSE both works on T+1 Settlement, which means if you are buying the shares today, shares will be credited in your demat account on next working day. Similarly, if you are selling the shares today, selling amount will be credited in your trading account on next working day. In this T+1 settlement, trade to trade and SME shares will have different settlement mechanism which is T+2 Settlement.

Contents hide
1 WHAT IS T+0 SETTLEMENT?
2 DOES ALL THE STOCKS ARE ELIGIBLE FOR T+0 SETTLEMENT?
2.1 WHEN DOES ALL THE STOCKS WILL BE IN T+0 SETTLEMENT?
3 HOW DOES IT BENEFIT INVESTORS AND TRADERS?
4 T+0 SETTLEMENT WORKS ON ALL DAYS?

WHAT IS T+0 SETTLEMENT?

T+0 Settlement means if you are buying the shares today, shares will be credited in your demat account by EOD, which would be done on next day earlier. Similarly, if you are selling the shares today, amount will be credited to your trading account by EOD.

As per SEBI, T+0 Settlement will be implemented in two phases. Phase 1 will be implemented from March 28th (Thursday).

In Phase1, T+0 Settlement will be a continuous session from 9.15am to 1.30pm.

DOES ALL THE STOCKS ARE ELIGIBLE FOR T+0 SETTLEMENT?

No, as per the exchanges only selected 25 stocks are allowed to trade in T+0 settlement. By March next year all the stocks will be allowed to trade in T+0 Settlement.

Sr no Symbol Series Name of Company
1 AMBUJACEM T0 Ambuja Cements Limited
2 ASHOKLEY T0 Ashok Leyland Limited
3 BAJAJ-AUTO T0 Bajaj Auto Limited
4 BANKBARODA T0 Bank of Baroda
5 BPCL T0 Bharat Petroleum Corporation Limited
6 BSOFT T0 Birlasoft Limited
7 CIPLA T0 Cipla Limited
8 COFORGE T0 Coforge Limited
9 DIVISLAB T0 Divi’S Laboratories Limited
10 HINDALCO T0 Hindalco Industries Limited
11 INDHOTEL T0 The Indian Hotels Company Limited
12 JSWSTEEL T0 Jsw Steel Limited
13 LICHSGFIN T0 Lic Housing Finance Limited
14 LTIM T0 Ltimindtree Limited
15 MOTHERSON T0 Samvardhana Motherson International Limited
16 MRF T0 Mrf Limited
17 NESTLEIND T0 Nestle India Limited
18 NMDC T0 Nmdc Limited
19 ONGC T0 Oil & Natural Gas Corporation Limited
20 PETRONET T0 Petronet Lng Limited
21 SBIN T0 State Bank of India
22 TATACOMM T0 Tata Communications Limited
23 TRENT T0 Trent Limited
24 UNIONBANK T0 Union Bank of India
25 VEDL T0 Vedanta Limited

                       Source – Nseindia

It is not mandate to Trade only in T+0 settlement in above stocks, Investor can also choose T+1 settlement.

WHEN DOES ALL THE STOCKS WILL BE IN T+0 SETTLEMENT?

As per SEBI and Exchanges, they have maintained a timeline of 1year for transition of settlement from T+1 to T+0.From T+2 to T+1 settlement, it took 1year for execution.

HOW DOES IT BENEFIT INVESTORS AND TRADERS?

Investors and traders will receive the shares and fund receipt on same day. As there will be T+0 Settlement, liquidity and volumes may increase drastically. Risk can be reduced as the investor can sell the shares on same day.

T+0 SETTLEMENT WORKS ON ALL DAYS?

T+0 settlement works on all working days except on days when,

  • Corporate action in prescribed stock.
  • Settlement holidays
  • Index Rebalancing or Rebalancing in percentage of scripts in Index.

 

 

 

 

 

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