- By Aditya Pratap Singh
- Mon, 27 Nov 2023 05:24 PM (IST)
- Source:JND
The T+0 or same-day settlement has become part of the discussion among stock market followers. In fact, stock market regulator SEBI Chief Madhabi Puri Buch said that from March 2024, a roadmap has been prepared to implement a T+0 settlement.
What is T+0 settlement?
At present, when you buy the stock of a company from the stock market, it takes 1 day for the stock to be credited to your demat account. This arrangement is called T+1 settlement. Now to reduce the time taken for a T+1 settlement, a T+0 settlement will be introduced. After that shares would be deposited in your demat account on the same day you bought the shares.
Also Read: PhonePe Plans To Commence Loan Service Soon Details Inside
Similarly, at present if you sell a share, it takes 1 day for the money for that share to arrive in your demat account. After the introduction of the T+0 settlement system, money will be credited to your demat account on the day of selling shares. You don't have to wait for 1 day for your money.
What is SEBI's future planning?
At present SEBI has prepared a roadmap to convert T+1 to T+0 settlement. SEBI Chief said that the T+0 settlement would start by March 2024. Once the T+0 settlement system is in place, SEBI's future plan is to further reduce the T+0 settlement time to instant settlement. SEBI Chief said that preparations for immediate settlement of shares will be made after the T+0 settlement.