BSE Brings in Beta Version of T+0 Settlement from March 28: A 12-Point Guide for Investors
Mumbai, March 22, 2024: The Bombay Stock Exchange (BSE) is set to revolutionize the Indian stock market with the introduction of the beta version of T+0 settlement. This move aims to enhance liquidity and streamline trading processes. Here’s a comprehensive guide for investors:
1. What Is T+0 Settlement?
- T+0 settlement refers to same-day settlement of trades.
- Investors will receive funds or securities on the same day as the transaction.
2. Market Timing
- Trading under T+0 settlement will occur continuously between 9:15 a.m. and 1:30 p.m..
3. Charges
- All charges applicable for T+1 settled securities will also apply for T+0 settled securities.
4. Eligibility
- T+0 settlement will be available for a limited set of 25 scrips and with a limited number of brokers.
- This option complements the existing T+1 settlement cycle.
5. Scrip ID and Symbol
- The Scrip ID for T+0 securities will be the same as that of the corresponding T+1 security, suffixed by the character “#” (e.g., HINDMOTORS#).
6. Group, Tick Size, and Market Lot
- These parameters remain the same as corresponding T+1 securities.
7. Order Types
- T+0 allows End of Day/Session, Immediate or Cancel (IOC), and Market & Limit Orders.
8. Order Matching
- Anonymous order book with continuous matching based on Price – Time priority.
9. Price Band
- Price band of +/- 1% (100 basis points) based on the close price of corresponding T+1 settled security.
- Re-calibrated throughout trading hours after a +/- 0.5% (50 basis points) movement in the last traded price (LTP) of T+1 settled security.
10. Eligible Members and Client Types
- All members eligible to trade in the equity segment.
- Excludes clients settling through custodians.
11. Market Timings
- Trading hours: 09:15 hrs to 13:30 hrs.
- Client code modification window: Till 13:45 hrs.
12. Trading Sessions
- One continuous session from 09:15 hrs to 13:30 hrs.
- No pre-open/special pre-open/block/auction/post-close sessions.
- No trading on the ex-date of any corporate action in the corresponding T+1 settled security.
- No trading during the index rebalancing day of corresponding T+1 security.
The BSE’s proactive step toward T+0 settlement aims to enhance market efficiency and provide investors with faster access to funds and securities. Stay informed and adapt to this new era of real-time trading!
Disclaimer: This article provides an overview of the BSE’s T+0 settlement and does not constitute financial advice. Readers are encouraged to consult with financial professionals for personalized guidance.
