T+1 Settlement: Addition of new securities

Settlement cycle refers to the timeline by which stock exchanges have to settle security transactions. Shorter settlement cycles are Good News for investors since it narrows the time window for any negative event (e.g: counterparty insolvency, bankruptcy, etc) to impact a trade settlement. 

As you all know, NSE & BSE has introduced the T+1 settlement cycle in the Cash Segment in a phased manner as per the SEBI guidelines.

  • W.e.f 25-Feb-2022, 83 securities from the bottom 100 stocks based on market capitalization were brought under T+1 Settlement. 
  • W.e.f 25-Mar-22, a further  list of securities was added to T+1 settlement 
  • As per recent circulars of NSE and BSE, w.e.f 29-Apr-2022,
  1. 456 securities of BSE will come under T+1 settlement
  2. 36 securities of NSE will come under T+1 settlement

Important points for stocks under T+1 settlement in the Cash segment:

  1. The stocks traded will be settled on T+1 day. 
  2. The MTF (Margin Trading Facility) Pledge Request needs to be authorized by 9:00 PM on T day for MTF funding.
  3. Auction settlement (if any) will happen on T+2 day.

To know more about the T+1 settlement cycle, refer

Joint Press Release| BSE Circular | Overview of T+1settlement

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