SEBI introduced optional T+0 (same-day) settlement for equity trades from March 2024, initially for 25 stocks. By 2026, coverage expanded to top 500 stocks. Investors opting in receive funds and securities on the same trading day. T+1 remains the default settlement cycle.
Why it matters
T+0 settlement reduces counterparty risk — the risk that the other party defaults between trade and settlement. Traditional T+2 meant two days of exposure; T+1 halved it; T+0 eliminates it entirely for same-day trades. SEBI's phased rollout reflects infrastructure readiness — brokers, clearing corporations, and depositories needed upgrades. The optional nature allows market participants to choose based on liquidity needs. Globally, the US moved to T+1 in 2024; India's T+0 option is ahead of most markets. Key risk: intraday liquidity pressure on brokers who must fund positions same-day.
SEBI introduced optional T+0 (same-day) settlement for equity trades from March 2024, initially for 25 stocks. By 2026, coverage expanded to top 500 stocks. Investors opting in receive funds and securities on the same trading day. T+1 remains the default settlement cycle.
Why it matters
T+0 settlement reduces counterparty risk — the risk that the other party defaults between trade and settlement. Traditional T+2 meant two days of exposure; T+1 halved it; T+0 eliminates it entirely for same-day trades. SEBI's phased rollout reflects infrastructure readiness — brokers, clearing corporations, and depositories needed upgrades. The optional nature allows market participants to choose based on liquidity needs. Globally, the US moved to T+1 in 2024; India's T+0 option is ahead of most markets. Key risk: intraday liquidity pressure on brokers who must fund positions same-day.
