Traditionally, When shares are bought in the stock market, the settlement occurs on T+1 day, meaning the next day after the trade.
With the new T+0 settlement system, the settlement is to be completed on the same trading day. Beta version is being launched on an optional basis starting from 28th Mar 2024.
Its beta version will be reviewed after three and six months. If everything goes smoothly, T+0 settlement will come into effect on a large scale.
T+0 settlement may not require much use of brokers' own funds. This will reduce overall business costs.
Now if someone sells the shares, the total amount will be credited to the trading account by 4:30 PM on the same day. And Shares can be purchased with that amount.
This Instant settlement increases liquidity in the market. At the same time, improves efficiency and transparency of the stock market.
LIC Housing Finance, LTI Mindtree, Petronet LNG, Samvardhana Motherson International, Union Bank of India, Divi's Laboratories, Birla Soft, Coforge, Bank of Baroda, Ashok Leyland