Newsletter Subject

Optional T+0 settlement to kick off with 25 large-cap stocks

From

thehindu.com

Email Address

news@newsalertbl.thehindu.com

Sent On

Thu, Mar 28, 2024 02:42 AM

Email Preheader Text

List features large-caps, frequently traded and ill-liquid scrips 28 March 2024 Optional T+0 settlem

List features large-caps, frequently traded and ill-liquid scrips [View in browser]( [See all newsletters]( 28 March 2024 Optional T+0 settlement to kick off with 25 large-cap stocks [Same-day settlement will be in addition to the existing T+1 settlement cycle currently in play and will be a precursor to instant settlement that may be rolled out on an optional basis at a later date] FAST TRADE [BSE]( and the [National Stock Exchange (NSE)]( will roll out same-day settlement of securities for the cash equity market starting Thursday. The bourses have put out a list of 25 common scrips that will be settled on the same day on an optional basis. These are all large-cap names and include Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Cipla, Divi’s Laboratories, Hindalco Industries, JSW Steel, LIC Housing Finance, LTIMindtree, MRF, Nestle India, SBI, and Vedanta. However, it puzzled market participants, as Reliance Industries, Infosys, and TCS did not figure on the list. Besides, the list also featured low liquid counters such as MRF (6-month average volume is 399 shares on BSE) and actively traded ones such as Union Bank (six-month average: 19.4 lakh shares). [Same-day settlement will be in addition to the existing T+1 settlement cycle currently in play and will be a precursor to instant settlement that may be rolled out on an optional basis at a later date] The exchanges haven’t spelt out a criteria for selecting these scrips or the names of brokers who will facilitate T+0 settlement. The transition to T+1 settlement from T+2 was also done in phases but with the stocks with the least market capitalisation being included first. Same-day settlement will be in addition to the existing T+1 settlement cycle currently in play and will be a precursor to instant settlement that may be rolled out on an optional basis at a later date. A shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors, and strengthen risk management at clearing corporations and the overall securities market ecosystem. In the current T+1 system, sellers can only access 80 per cent of their funds on the sell day while waiting until the next day to receive the remaining 20 per cent. However, with the new T+0 settlement system, sellers will have access to 100 per cent of their funds on the same day of trade, according to Samir Shah, Head of Online Business at Axis Securities. “This will increase liquidity for investors, allowing them to quickly enter into other trades without losing out on investment opportunities due to waiting periods. Additionally, the new system will reduce counterparty default risks,” said Shah. - Also read: [Reliance, auto stocks lead in Sensex, Nifty recovery]( Same-day settlement will substantially mitigate transactional risks, offering immediate and tangible value to both traders and investors alike, added Vamsi Krishna, CEO of StoxBox. A shorter trading window from 9:15 AM to 1:30 pm will be available for these 25 scrips. All investors are eligible to participate. T+1 surveillance measures will apply to scrips in the T+0 settlement cycle as well. The price in the T+0 segment will operate with a price band of +/-100 basis points from the price in the regular T+1 market. This band will be recalibrated after every 50 basis points movement in the underlying T+1 market. T+0 prices will not be considered in index calculation and settlement price computation. There will be no separate close price for securities based on trading in the T+0 segment. There shall be no netting in pay-in and pay-out obligations between the T+1 and T+0 settlement cycles. “The significant evolution of technology, architecture, and capacity of MIIs, presents opportunities for further advancing clearing and settlement timelines. Further, India’s depository ecosystem has visibility of individual client-level holdings in digital form, and so has the ability to effect immediate transfer of securities, and India’s payments and settlements ecosystem has long allowed for real time transfer of funds,” SEBI had said in a circular last week. SEBI had introduced rolling settlement in July 2001 for certain scrips on a T+5 basis (in 5 days from the date of trade) and then expanded to all scrips in a phased manner. T+5 gave way to T+3 in April 2002, and from April 2003, it was T+2. The cycle was shortened further to T+1 from January 2023. You Might Also Like [RBI breather for lenders on AIF investments]( [Money & Banking]( [RBI breather for lenders on AIF investments]( [Government to borrow ₹7.5-lakh crore in April-Sept]( [Economy]( [Government to borrow ₹7.5-lakh crore in April-Sept]( [Start-ups continue laying off employees, but at a slightly slower pace]( [Data Focus]( [Start-ups continue laying off employees, but at a slightly slower pace]( [Money bag candidates to former CM, all in fray for TN LS polls]( [Elections 2024]( [Money bag candidates to former CM, all in fray for TN LS polls]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](

Marketing emails from thehindu.com

View More
Sent On

08/12/2024

Sent On

08/12/2024

Sent On

08/12/2024

Sent On

07/12/2024

Sent On

05/12/2024

Sent On

05/12/2024

Email Content Statistics

Subscribe Now

Subject Line Length

Data shows that subject lines with 6 to 10 words generated 21 percent higher open rate.

Subscribe Now

Average in this category

Subscribe Now

Number of Words

The more words in the content, the more time the user will need to spend reading. Get straight to the point with catchy short phrases and interesting photos and graphics.

Subscribe Now

Average in this category

Subscribe Now

Number of Images

More images or large images might cause the email to load slower. Aim for a balance of words and images.

Subscribe Now

Average in this category

Subscribe Now

Time to Read

Longer reading time requires more attention and patience from users. Aim for short phrases and catchy keywords.

Subscribe Now

Average in this category

Subscribe Now

Predicted open rate

Subscribe Now

Spam Score

Spam score is determined by a large number of checks performed on the content of the email. For the best delivery results, it is advised to lower your spam score as much as possible.

Subscribe Now

Flesch reading score

Flesch reading score measures how complex a text is. The lower the score, the more difficult the text is to read. The Flesch readability score uses the average length of your sentences (measured by the number of words) and the average number of syllables per word in an equation to calculate the reading ease. Text with a very high Flesch reading ease score (about 100) is straightforward and easy to read, with short sentences and no words of more than two syllables. Usually, a reading ease score of 60-70 is considered acceptable/normal for web copy.

Subscribe Now

Technologies

What powers this email? Every email we receive is parsed to determine the sending ESP and any additional email technologies used.

Subscribe Now

Email Size (not include images)

Font Used

No. Font Name
Subscribe Now

Copyright © 2019–2025 SimilarMail.