SEBI introduced T+0 settlement framework allowing same-day settlement of equity trades in Indian capital markets. Implementation began March 2024 with select stocks on optional basis alongside existing T+1 system. Framework enables investors to receive shares and payment on trade execution day itself. Currently covers 25 scrips including major stocks like Reliance, HDFC Bank, TCS. Market participants can choose between T+0 and T+1 settlement cycles. Aims to improve market efficiency, reduce counterparty risk, and align with global best practices.

T+0 settlement represents a paradigm shift from India's current T+1 system, where trades settle one day after execution. Under T+0, the entire settlement cycle—trade matching, clearing, and settlement—completes on the same day. This requires robust risk management systems, sufficient liquidity, and enhanced operational capabilities from brokers and clearing corporations. For retail investors, T+0 offers immediate access to funds from sale transactions, enabling intraday reinvestment opportunities. However, it demands higher margin requirements and sophisticated risk controls. The phased implementation starting with liquid blue-chip stocks allows market infrastructure to adapt gradually. Global markets like US (T+2 moving to T+1) and some European exchanges already operate shorter settlement cycles. Success depends on technological readiness of market participants, adequate pre-funded settlement guarantee mechanisms, and investor awareness. The framework could enhance India's position as an attractive investment destination by reducing settlement risk and improving capital velocity, particularly beneficial for algorithmic and high-frequency trading strategies.