T+1 settlement: Exchanges to rollout T+1 settlement cycle in equities from February 25

MUMBAI: India stock exchanges have decided to rollout the T+1 equity settlement cycle from February 25, 2022, after receiving approval from the Securities and Exchange Board of India (Sebi) for a phase-wise implementation, a joint statement by bourses and depositories said.

Stock exchanges said that the bottom 100 stocks based on daily market capitalisation averaged in October will be brought under the new settlement system followed by 400 stocks in March. The last batch of stocks will be brought under the new system by January 27, 2023.

Bourses said that any new stock getting listed after October 2021, will be added to the list based on the market capitalisation calculated on the basis of average trading price of 30 days after commencement of trading.

In September, the capital market regulator allowed stock exchanges to move towards T+1 settlement, which will further accelerate the settlement process in the stock market to one day from two days earlier.

However, Sebi’s move has met with protests, mainly, from foreign portfolio investors (FPIs) who have raised concerns over logistics of moving to a T+1 settlement system. Several foreign investor forums in September had lodged a formal request with SEBI to postpone the implementation of the new system, ET had reported.

Here is the list of the first 100 stocks that will move to T+1 settlement from February 25: