Highlights of SEBI Circular –
(SEBI Circular No. SEBI/HO/MRD2/DCAP/P/CIR/2021/628
Dtd. 07 th September, 2021)
1) Applicability:
The provisions of this circular shall come into force w.e.f. 1 st January, 2022.
2)T+1 settlement cycle :-
A Stock Exchange may choose to offer T+1 settlement cycle on any of the scrips, after giving an advance
notice of at least 1 month, regarding change in the settlement cycle, to all stakeholders, including the public at large, and also disseminating the same on its website.
3)Continuation of Minimum period of 6 months :-
After opting for T+1 settlement cycle for a scrip,
the Stock Exchange shall have to mandatorily continue with the same for a minimum period of 6 months.
4) 1-month advance notice for Switching back to T+2 S Cycle :-
In case, the Stock Exchange intends to switch back to T+2 settlement cycle, it can do so by giving 1-month advance notice to the market.
5)Whether Netting concept is applicable:
There shall be no netting between T+1 and T+2 settlements.
6) Applicability on transactions:
The settlement option for security shall be applicable to all types of transactions in the security on that Stock Exchange.
Read More at below circular
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