India (SEBI) has set up a panel of experts
To analyse the process of shifting India’s
Trade settlement cycle from the current
T+2 (Trade plus 2 days) to T+1 (Trade
Plus 1 day).
• The panel consists of experts from
Exchanges, clearing corporations and
•The shift to T+1 will reduce the
Settlement time and risk involved and
Increase the liquidity and trade
The Securities and Exchange Board of Key Points:
i.Trade settlement cycle refers to the
time within which brokers have to pay full money and take delivery of stocks.
ii.T is the transaction date and the
abbreviations T+1, T+2, and T+3 refers to
the settlement dates of security
transactions that occur on a transaction
date plus 1 day, plus 2 days and plus 3
ii.In the case of T+1 settlement, the
shares would be transferred to the
buyer’s Demat account after the
transaction day (i.e the next day).
iv.Currently, the trades are settled within 2 days after the transaction day. India Made a transition from T+3 to T+2 in 2003.
v.The transition to T+1 will affect the
Foreign Portfolio Investments due to the
About Securities and Exchange Board of India (SEBI)
Establishment 1992 in accordance with
The SEBI Act, 1992.
Headquarters Mumbai, Maharashtra
Chairman – Ajay Tyagi