World’s quickest stock settlement off to a smooth start

MUMBAI: On Thursday, the world’s quickest stock trading and settlement system went live, with 136 deals from 73 brokers covering most of the 25 equities that are permitted in the segment across two exchanges, the NSE and BSE.

By nightfall, 49 investors on the BSE had finished their deals and settled using the T+0 settlement method. The similar figure on the NSE was 41 investors.
“The T+0 settlement stands as a pioneering attempt across the globe, and this rollout involved active collaboration between regulators, exchanges, clearing corporations, depositories, and the member community at large,” according to a BSE press statement.

Stocks purchased and sold between 9:15 a.m. and 1:30 p.m. are resolved under the T+0 settlement method at the end of the same day, with purchasers receiving the purchased stocks in their demat account and sellers receiving the money credited to their bank accounts.

The present T+1 settlement system, which allows purchasers to get their equities in their demat accounts the next working day after the day of transaction, is scheduled to function concurrently with this system. In a similar vein, one working day after the day of exchange, sellers get the money in their bank accounts.

According to Sundararaman Ramamurthy, MD & CEO of the BSE, “this (T+0 settlement system) is a significant step towards greater efficiency and reduced risk in our market.” “We are confident that this optional settlement cycle will contribute to the continued growth and development of the capital markets in India.”

A total of 329 orders were placed by 41 users, resulting in 90 transactions involving 10 equities. There were 49 unique investors using this feature, according to the BSE announcement.
According to reports, there were 46 deals in the category on the NSE, involving 32 brokers and 41 distinct investors in 14 equities.