INDIA: NSE Announces Completion of Transition to T+1 Settlement Cycle in India Equity Markets

Friday January 27 2023

National Stock Exchange of India (NSE) announced that all trades executed from 27^th January 2023 in any securities in the equity segment will be settled on T+1 basis.

The journey to shortening of settlement cycle began on September 7^th, 2021, when Securities and Exchange Board of India (SEBI) permitted stock exchanges to introduce T+1 settlement cycle from January 01^st, 2022, on any of the securities available in the equity segment. All the Market Infrastructure Institutions (Stock Exchanges, Clearing Corporations and Depositories) jointly finalized the roadmap for the implementation of T+1 settlement cycle in a phased manner.

The first batch of securities transitioned to T+1 Settlement on February 25^th, 2022, and thereafter, every month a batch of around 500 securities transitioned to T+1 Settlement. From January 27^th, 2023, all securities equity shares including SME shares, exchange traded funds (ETFs), Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), Sovereign Gold Bond (SGB), Government Bonds and Corporate Bonds trading in the equity segment will now be settled only on T+1 basis.

Globally most stock exchanges in developed as well as emerging markets follow the T+2 settlement system.

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