NSE issued an update on the roadmap for the introduction of the T+1 rolling settlement cycle in the equity market

Nov 24, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe National Stock Exchanges (NSE) on November 23, 2022, issued an update on the roadmap for the introduction of the T+1 rolling settlement cycle in the equity market. 

The SEBI permitted Stock exchanges to introduce the T+1 settlement cycle from January 01, 2022, on any of the securities available in the equity segment on September 07, 2021. 

The Market Infrastructure Institutions (MIIs) issued a joint press release regarding the roadmap for the implementation of the T+1 settlement cycle. Accordingly, all listed stocks, across stock exchanges (BSE, NSE & MSE), were ranked in descending order based on daily market capitalization averaged for the month of October 2021.

The stocks on which futures and options are available are to be transitioned to T+1 settlement in two batches – December 2022 and January 2023. To bring in operational efficiency and ease for market participants, it has been now decided that all stocks on which derivatives contracts are available will be transitioned to T+1 settlement in a single batch i.e., in January 2023 instead of two separate batches. 

The Exchanges will revise the original schedule for the transition of stocks to T+1 settlement and issue the circular informing the list of stocks to be transitioned in December 2022 and January 2023.


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