The Securities Exchange Board of India through circular dated September 07, 2021 has allowed stock exchanges to offer T+1 rolling settlement on an optional basis. A Stock Exchange may choose to offer T+1 settlement cycle on any of the scrips subject to following conditions:
- Give an advance notice of at least one month, regarding change in the settlement cycle,to all stakeholders, including the public at large, and also disseminate the same on its website.
- After opting for T+1 settlement cycle for a scrip, the Stock Exchange shall have to mandatorily continue with the same for a minimum period of 6 months. Thereafter, in case, the Stock Exchange intends to switch back to T+2 settlement cycle, it shall do so by giving 1-month advance notice to the market.
- Any subsequent switch (from T+1 to T+2 or vice versa) shall be subject to minimum period and notice period.
- There shall be no netting between T+1 and T+2 settlements.
- The settlement option for security shall be applicable to all types of transactions in the security on that Stock Exchange.
The provisions of this circular shall come into force with effect from January 01, 2022.
