BSE launches T+0 Settlement’s Beta Version

The BSE and its clearing arm Indian Clearing Corporation Limited (ICCL) announced the successful introduction of the beta version of the T+0 settlement on Thursday.

The beta version is being implemented to ensure that the shortened settlement cycle runs smoothly before it is fully launched. The beta version allows investors to deal in 25 securities with a T+0 settlement.

“Designed to settle trades on the same day they are implemented, the T+0 settlement enables quicker receipt of funds and securities in investor accounts thereby reducing the risks associated with the time lag,” the Bombay Stock Exchange (BSE) said in a statement.

The T+0 settlement represents a global attempt, and its implementation required active collaboration from regulators, exchanges, clearing corporations, depositories and the member community as a whole.

On the first day, 63 users participated in this optional segment, with up to 41 participants trading in 10 scrips and placing a total of 329 orders, resulting in 90 deals. The number of unique investors using this facility stood at 49.

Sundararaman Ramamurthy, Managing Director and CEO of the BSE commented on the inauguration, saying, “We are glad to inform you that the first T+0 settlement cycle was successfully implemented. This is a huge step toward increased efficiency and lower risk in our market. We are optimistic that this flexible settlement cycle would help to sustain the expansion and development of India’s capital markets.”