Stocks
NSE launches ‘T+0’ same-day settlement scheme

NSE said the members opting for the ‘T+0’ facility would need to make the payments by 8.30am on the next settlement day, before the opening of the next trading session


The National Stock Exchange (NSE) has introduced a same-day settlement scheme ‘T+0’, under which members can save on additional margins if the payments for trades are made before the opening of the next trading session.

 

In a circular to come into effect from 15th March, NSE said members opting for this ‘T+0’ facility (which refers to settlement on same day of the trading) would need to make the payments by 8.30am on the next settlement day. The day’s trading begins at about 9.00am on the bourses.

 

Normally, the members are allowed to make the payments after the opening of trading hours in the next trading session under the T+1 settlement.

 

However, any major crash in stock prices exposes the members to the risk of paying scaled-up margins, if the existing margins become insufficient to meet the payment obligations under the existing facility. The new facility would mitigate this risk of additional margin payment obligations.

 

NSE said that the members can opt for ‘T+0’ facility at any time, but they need to intimate the Clearing Corporation in advance about the same in a specified format, while they also need to give a prior intimation for revoking this facility.

 

“The pay-in of T+0 settlement obligation for such clearing members shall be done at 8:30am on the next settlement day,” NSE said in the circular.

 

“Clearing members who opt for pay-in on T+0 basis would not be levied scaled-up margins,” it added.

 

The exchange said that non-payment or partial payment of settlement obligation by the scheduled time would be construed as non-compliance and penalties applicable for fund shortages from time to time would be levied.

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COMMENTS

srinivasan M

4 years ago

Few questions coming to mind

1. Will this become mandatory settlement method in future ?
2.How does the retail investor apply for this settlement.
3. From when this will start ?
4. Can the broker deny this service to retail participants
5. Is there a form to download and fill to apply for this.
6. How long will short delivery shares take to get delivered.

Ramesh Iyer

4 years ago

Is this for stock brokers or retail investors too ?

REPLY

NSriramamurty

In Reply to Ramesh Iyer 4 years ago

For Both Brockers and Traders.Brokers have to Opt for T+0 Settlent,in which case traders have to Pay them Same Day,so that brokers can pay in Clearance by 8:30 AM.If not,Penalties collected from Brokers for Dafault of Payment will be Collected in Turn from Traders.

Anil Agashe

4 years ago

Well done NSE. Hopefully will become a norm in due course. Don't think there is any exchange in the world with this facility!

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