SEBI Updates : – Introduction of T+1 rolling settlement on an optional basis by SEBI

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

• SEBI Trading Cycle-0e88ea5d
  Title: SEBI Trading Cycle-0e88ea5d