NSE, BSE starts T+1 Stock Settlement From February 25, 2022

NSE, BSE starts T+1 Stock Settlement From February 25, 2022
  • From February 25, 2022, India has become the second country after China to implement T+1 stock settlement mechanism in a phased manner.  The system will be starting with select stocks and then gradually adding others to the fold.
  • Instruction regarding this was issued by SEBI on January 01, 2022. Before this, the settlement period of stocks in India was T+2, i.e. two days after the actual buy/selling of stock.
  • T means the trade/transaction day i.e. the day on which stock is brought/sold. and here T+1 means that the actual stock settlement will happen on next day i.e +1 day. Ex: You buy a stock on Monday, you will get it in your Demat account Tuesday.

Points to remember:

  1. SEBI has introduced what settlement period of stocks from February 25, 2022?- T+1
  2. India is the ___ country to implement the T+1 settlement of Stock.- Second
  3. FIrst country to implement the T+1 settlement of stock?- China

Source: economic times and Outlook India

Extra Info:

  • SEBI introduced the present T+2 settlement in April 2003. Before that settlement of T+3 was followed by stock exchanges.
  • Stock exchanges like BSE and NSE have selected, the bottom 100 stocks based on market cap that will be settled using the T+1 mechanism starting February 25. 
  • Thereafter, 500 more stocks will be added every last Friday of subsequent months, until every stock is placed under the new settlement system.

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