Launched in March 2024, the pilot allowed trades in 25 stocks to be executed and settled on the same day. | Photo Credit: FRANCIS MASCARENHAS
Most qualified stock brokers (QSBs) had completed around 60–70 per cent of the required systems and process work but have asked SEBI to make the framework optional even for brokers, saying the same-day settlement plan lacks a viable business case and could disrupt the smoother T+1 cycle.
The markets regulator, in its circular on Thursday, only said that QSBs needed more time for a “smooth implementation”, but sources said the open-ended extension effectively puts the same-day settlement experiment on hold for now.
“There was hardly any trading in the 25-stock pilot. Investors are not asking for T+0, and liquidity would simply split if both cycles ran together,” said a senior official at a large brokerage.
T+1 over T+0
Launched in March 2024, the pilot allowed trades in 25 stocks to be executed and settled on the same day. However, volumes remained negligible even months after launch, as investors and institutions preferred the T+1 cycle.
Brokers said offering two settlement systems simultaneously requires nuanced back-end and technological changes. “Running two settlement cycles side by side is far more complex than it sounds, as the operational friction between T+1 and T+0 is substantial,” said another QSB source.
A regulatory source said industry feedback suggested limited demand and trading activity so far. “It’s better not to rush something when the market ecosystem isn’t ready or there’s no clear appetite,” the person added.
In December last year, SEBI had expanded the optional T+0 framework to cover the top 500 stocks by market capitalisation, with QSBs required to be ready by May 1, later extended to November 1. The latest circular has not set a new deadline, indicating the plan may be revisited only after the market shows readiness and demand.
SEBI did not respond to an email seeking comment.
More Like This
Published on November 2, 2025
