T+1 settlement cycle from today on NSE, BSE

New Delhi: Stock exchanges BSE and NSE will roll out shorter settlement cycle or T+1 regime from today, February 25, a move that will help reduce margin requirement for clients and boost retail investment in equity markets.

T+1 (trade plus one) means that market trade-related settlements will need to be cleared within one day of the actual transactions taking place. Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done (T+2).

The stock exchanges NSE and BSE in November in a joint statement announced that they will implement the T+1 settlement cycle in a phased manner starting February 25, with the bottom-100 stocks in terms of market value.

Thereafter, 500 stocks will be added based on the same market value criteria from the last Friday of March and so on every following month

(With inputs from news agencies)