T+0 settlement rollout remains in limbo as brokers struggle with readiness
Brokers unpreparedness and operational challenges keep the T+0 settlement rollout stalled, despite SEBI extensions.Summary
T+0 settlement, intended to credit trades on the day of execution, has been repeatedly postponed by SEBI after three extensions, largely because brokers lack the necessary systems. The beta launch by NSE and BSE in March 2024, and the expansion of eligible stocks to the top 500, were not matched by broker readiness, as same‑day settlement would cut their float income and raise technology costs. Key obstacles include running T+0 and T+1 simultaneously, meeting tight cut‑offs (trades by 1:30 pm, funds by 4:30 pm), and the exclusion of institutional and foreign investors who must manage FX and securities together. SEBI has hinted at further extensions and suggested incentives or mandatory timelines to upgrade broker infrastructure, but without clear incentives for long‑term investors, the initiative remains in limbo.
(Source：The Hindu - Business Line)