F&O in all stocks for Jan. T+1 agreement effective from 2023

Mumbai: T+1 i.e. trade plus one settlement will be implemented in all futures and options (F&O) as per the time frame set by capital market regulatory body SEBI and stock exchanges to speed up and shorten the settlement cycle in stock markets. ) stock from Jan 2023. Market Intermediaries Institutions (MIIs), including BSE, NSE and […]
 


F&O in all stocks for Jan.  T+1 agreement effective from 2023

Mumbai: T+1 i.e. trade plus one settlement will be implemented in all futures and options (F&O) as per the time frame set by capital market regulatory body SEBI and stock exchanges to speed up and shorten the settlement cycle in stock markets. ) stock from Jan 2023.

Market Intermediaries Institutions (MIIs), including BSE, NSE and MSE, said in a joint statement that in order to enhance operational efficiency and ease market participants, all shares currently available in derivative contracts will be shifted to T+ settlement with effect from January 2023. will be given.

Hence now all these F&O shares will be shifted to T+1 settlement in a single batch instead of two separate batches. Under the T+1 settlement cycle, investors have to deliver their money or shares within 24 hours.

Earlier, in T+1 settlement, the F&O shares were to be shifted in two batches i.e. December 2022 and January 2023. In the first phase of T+1, 100 stocks with minimum market capitalization were shifted to the new settlement cycle on NSE in January this year.

Thereafter, from March 2022 onwards, 500 stocks with the following market caps were shifted to T+1 settlement. While every month till January 2023, he had to shift the next ranked shares.

Accordingly, the original schedule-structure of transfers by stock exchanges in their T+1 settlement would be changed and a circular was to be issued notifying the list of shares to be transferred in this new settlement cycle from December 2022 and January 2023 . It is noteworthy that in April 2003, SEBI introduced the settlement cycle from T+3 to T+2.