The Securities and Exchange Board of India (SEBI) board has approved the implementation of same-day (T+0) settlement for the top 500 stocks by market capitalization, marking a significant milestone in India’s capital market infrastructure development.
## Implementation Timeline
Key phases of the T+0 rollout:
– Phase 1 (March 2026): Top 100 stocks
– Phase 2 (June 2026): Top 200 stocks
– Phase 3 (September 2026): Top 500 stocks
– Trading Hours: Optional settlement in afternoon session
## Current Settlement Cycle
India currently follows T+1 settlement, introduced in January 2023. The move to T+0 will make India one of the few markets globally offering instant settlement.
## Benefits for Investors
Same-day settlement offers several advantages including reduced counterparty risk, faster access to funds, and improved capital efficiency for market participants.
## Operational Framework
Brokers and clearing corporations will need to upgrade their systems to handle real-time settlement. SEBI has mandated infrastructure readiness tests before the rollout.
## Global Comparison
While most developed markets still follow T+2 settlement, India’s move to T+0 positions it ahead of markets like the US and UK.
## Industry Preparedness
Stock exchanges, clearing corporations, and depositories have confirmed their readiness for the transition. Brokers are upgrading their systems to support instant settlement.
## Investor Education
SEBI has mandated investor awareness campaigns to educate market participants about the new settlement mechanism.
