India’s stock market regulator Securities and Exchange Board of India (SEBI) has announced that T+0 settlement of options will be available for top 500 stocks, according to an official notification released on Tuesday, December 10.
According to the circular, this announcement will be applicable from January 31, 2025.
“The T+0 settlement cycle for options will be available to the top 500 scrips by market capitalization as on December 31, 2024,” SEBI said.
The regulator also said the option would be initially rolled out to the bottom 100 companies on a list of 500 total, with overall availability rolled out in increments of 100 companies.
“The scrip will be available for trading and settlement from the bottom 100 scrips of the aforementioned 500 companies, and gradually every month the next lowest scrip will be available for trading until the top 500 scrips are available for trading in the optional T+0 settlement cycle. 100 companies shall be added,” SEBI said in an official statement.
According to the circular, there are already a total of 25 stocks that fall under the option T+0 settlement cycle, and the next 500 stocks will be added to the existing stocks.
The market regulator has also allowed all stockbrokers to participate in the T+0 settlement cycle for options. Within the scope of the regulations, from January 31, 2025, stockbrokers will be allowed to charge differential brokerage fees for T+0 and T+1 settlement cycles.
Regarding Qualified Stock Broker (QSB) Participation, SEBI has specified that companies that meet the parameters of minimum number of active customers to qualify as a QSB are designated as “required to enable seamless participation of investors.” “We will implement appropriate systems and processes.” Optional T+0 settlement cycle. ”
SEBI has also given stock exchanges a ‘block deal window’ which will be available only for the morning session from 8:45 am to 9 am, in addition to the existing block deal window from 8:45 am to 9 am. ” was ordered to be introduced. The T+1 payment cycle is from AM and 2:05 PM to 2:20 PM.
“Trades in the T+0 block window session of options will be settled in the T+0 settlement cycle,” SEBI said in connection with the block trade window.
According to the official release, the QSB and block deal parameter updates will be effective from May 1, 2025.
