Promising faster transactions and increased efficiency in India’s stock market landscape.
In a significant development, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have launched a same-day settlement mechanism for trading in select securities. This initiative, which came into effect today, offers investors the option of same-day settlement for a list of 25 common scrips.
The announcement, made on Wednesday, revealed a list of 25 companies whose shares will now be available for trading under the same-day settlement mechanism. These companies span a range of sectors, including banking, automotive, energy, and information technology. Notable names on the list include Ambuja Cements, Ashok Leyland, Bajaj Auto, State Bank of India, and Tata Communications, among others.
Interestingly, some prominent companies like Reliance Industries, Infosys, and TCS are conspicuously absent from the list. Additionally, the selection criteria for these 25 scrips remain undisclosed, leaving market observers curious about the rationale behind the choices made.
The introduction of same-day settlement is poised to complement the existing T+1 settlement cycle, offering investors an additional option for conducting transactions. This move is seen as a precursor to the eventual implementation of instant settlement, which may be rolled out on an optional basis in the future.
The benefits of same-day settlement are manifold. By reducing the settlement cycle, the initiative promises to enhance cost and time efficiency in securities trading. Moreover, it is expected to bring greater transparency in charges to investors, thereby fostering trust and confidence in the market ecosystem.
This development comes on the heels of a circular issued by the Securities and Exchange Board of India (SEBI), highlighting the technological advancements in market infrastructure institutions (MIIs) and the depository ecosystem. The circular emphasized the potential for further advancements in clearing and settlement timelines, leveraging the digital capabilities of India’s financial ecosystem.
Overall, the introduction of same-day settlement represents a significant step forward in modernizing India’s stock market operations. With faster transaction processing and improved operational efficiency, market participants can look forward to a more seamless and streamlined trading experience. As the Indian financial landscape continues to evolve, initiatives like these are poised to shape the future of securities trading in the country.
