SEBI rolls out optional T+0 settlement for top 500 stocks; permits brokers to charge different rates

Indian stock market regulator, the Securities and Exchanges Board of India (SEBI), announced that the optional T+0 settlement will now be available to the top 500 stocks, according to an official circular released on Tuesday, December 10. 

According to the circular, this announcement will be applicable from January 31, 2025.

“Optional T+0 settlement cycle shall be made available to top 500 scrips in terms of market capitalization as on December 31, 2024,” said SEBI.

The regulator also said that the option will be first rolled out for the bottom 100 companies of the total 500 list and the entire availability will be rolled out in intervals of 100. 

“The scrips shall be made available for trading and settlement starting with scrips at bottom 100 companies out of the aforesaid 500 companies and gradually include the next bottom 100 companies every month till top 500 companies are available for trading in optional T+0 settlement cycle,” said SEBI in its official statement.

There are, in total, 25 stocks which already fall under the optional T+0 settlement cycle, and these upcoming 500 stocks will be an addition to the existing ones, as per the circular.

The market regulator also allowed all stock brokers to participate in the optional T+0 settlement cycle. Within the regulatory limit, stock brokers are now permitted to charge differential brokerage for T+0 and T+1 settlement cycles, effective from January 31, 2025. 

On the participation of Qualified Stock Brokers (QSBs), SEBI said that entities which are designated and meet the parameter of a minimum number of active clients for qualification as QSB, “shall put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle.” 

SEBI also directed the stock exchanges to implement a “Block Deal window” which will be available only for the morning session during 8:45 am to 9:00 am in addition to the existing Block Deal windows of 8:45 am to 9:00 am and 2:05 pm to 2:20 pm for T+1 settlement cycle.

“The trades in optional T+0 block window session will be settled on T+0 settlement cycle,” said SEBI in context to the block deal window.

The QSB and Block Deal parameter update will be effective from May 1, 2025, according to the official release.