Has SEBI Extended the Deadline for T+0 Settlement Implementation for Qualified Stock Brokers?
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Synopsis
In a significant development, SEBI has extended the deadline for Qualified Stock Brokers to implement the optional T+0 rolling settlement, addressing operational challenges faced by brokers. This extension aims to ensure a smoother transition while enhancing investor protection in India's evolving market landscape.
Key Takeaways
- SEBI has extended the deadline for QSBs to implement T+0 settlement.
- The extension aims to address operational challenges faced by brokers.
- T+0 settlement allows same-day trade settlements, enhancing liquidity.
- New timelines for implementation will be communicated later.
- SEBI is also proposing reforms for mutual fund management.
Mumbai, Oct 30 (NationPress) The Securities and Exchange Board of India (SEBI) has postponed the deadline for Qualified Stock Brokers (QSBs) to establish the systems and processes necessary for the optional T+0 rolling settlement within the equity cash market.
In light of the challenges raised by QSBs regarding their ability to ensure system readiness by the original deadline of November 1, 2025, SEBI has opted to extend this timeline to facilitate a smoother implementation. This decision was articulated in a recent circular, emphasizing the need for QSBs to have sufficient time for the seamless participation of investors in the optional T+0 settlement cycle.
Details regarding the new timeline will be shared later, ensuring that brokers can adequately prepare for investor participation in this optional settlement cycle.
This decision follows feedback from QSBs, which outlined operational hurdles that make meeting the initial deadline challenging.
The T+0 settlement system allows for trades to be settled on the same day they are conducted, enhancing liquidity so that investors can receive their funds or shares promptly.
The extension underscores SEBI's commitment to balancing technological preparedness with investor protection in India's dynamic securities environment.
In addition, SEBI has proposed significant reforms for the management of mutual funds in the country. The regulator seeks to reduce brokerage fees, improve fee transparency, and simplify the cost structures investors face.
In a consultation paper reviewing the 1996 Mutual Fund Regulations, SEBI has recommended tightening the cost structures for Asset Management Companies (AMCs) to ensure that the benefits are more directly passed on to investors. Among the most notable proposals is a substantial reduction in the brokerage and transactional costs associated with mutual fund schemes.
Point of View
SEBI's decision reflects a responsible approach to regulatory oversight, ensuring that the needs and challenges of Qualified Stock Brokers are acknowledged. By extending the deadline, SEBI reinforces its commitment to fostering a robust and investor-friendly market environment, positioning itself as a regulatory body that prioritizes both innovation and investor protection.
NationPress
27/12/2025
Frequently Asked Questions
What is T+0 settlement?
T+0 settlement refers to a trading mechanism where transactions are settled on the same day they are executed, allowing for faster liquidity.
Why was the deadline extended?
The deadline was extended to accommodate the operational challenges faced by Qualified Stock Brokers in ensuring timely readiness of their systems.
When is the new deadline for implementation?
The new deadline will be announced at a later date by SEBI.
What are the benefits of T+0 settlement for investors?
T+0 settlement provides investors with quicker access to their funds or shares, enhancing liquidity and overall market efficiency.
What other changes is SEBI proposing?
SEBI is proposing reforms for mutual fund management aimed at reducing costs and improving fee transparency for investors.
