By March 28, SEBI will optionally use T+0 settlement: Madhabi Puri Buch

On March 28, the market regulator SEBI will optionally implement T+0 settlement. This was said by Chairperson Madhabi Puri during a conversation outside of an AMFI function in Mumbai. T+0 settlement is practically immediate or settlement on the same day.

Right now, trade is done on a T+1 basis. This will exist in addition to the secondary market’s current T+1 settlement cycle. The immediate settlement is intended to “make our regulated markets competitive and offer investors the same set of advantages as others,” as stated by the SEBI Chief. She was alluding to other internationally accessible alternative investment possibilities, such as cryptocurrency.

By March 15, small and midcap funds must disclose their stress tests.
Buch also noted that a disclosure format intended to stress test the mutual funds would be released by March 15, with reference to making the regulated markets more competitive and safer for investors. All mutual funds will include disclosures about the relative performance of small and midcap stocks. This will be required.

She states that the goal of stress testing is to determine if an unfavorable environment exists. The largest risk associated with money market funds (MF) schemes is their daily redemption procedure. In the event of significant redemption demand, it is crucial to determine how long it will take for each of these schemes to withdraw from the underlying portfolio.

In a difficult or stressful circumstance, this will assist investors in comprehending and evaluating the risks associated with investing in midcap and small size funds.

“There are sections of froth in the market and it is not appropriate to keep the bubble building,” she said once again. It is essential to take proactive measures to prevent the bubble from becoming further inflated.

SEBI is aiming for more disclosures in SME IPOs.

Malpractices at the IPO and trading stage are under review in the SME segment, with reference to investor security and indications of manipulation in the SME IPO arena. In order to facilitate more information distribution, SEBI is aiming to increase disclosures. Additionally, it is making sure that SME IPOs are listed with sufficient and relevant information, and it is even looking into using AI to increase transparency.

The market regulator also said that it has been keeping a careful eye out for any possible price manipulation in some IPOs and that it plans to implement disclosures at every stage in the SME IPO arena.