T+0 Settlement: SEBI Grants Extra Time to Brokers
SEBI has officially extended the implementation timeline for the optional T+0 settlement cycle to November 2025. This gives qualified stock brokers (QSBs) more breathing room to operationalise faster trade settlements in a phased, risk-controlled manner.
Let’s break it down.
What is the T+0 Settlement Cycle?
- T+0 means trades are settled on the same day they are executed.
- Currently, India follows a T+1 cycle, i.e., trade today, settle tomorrow.
- SEBI is exploring T+0 as a faster, efficient upgrade for capital markets.
SEBI’s Latest Update
Notification Date: April 30, 2025
New Deadline: November 2025
Applies to: Only Qualified Stock Brokers (QSBs)
Previous Deadline: April 2025
📌 Reference: SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/46
Why the Extension?
- Operational Readiness: Brokers cited tech and infra constraints.
- Investor Safety: SEBI wants smoother rollout with minimal disruption.
- Intermediary Coordination: Depositories, clearing corps, and exchanges need more sync time.
Who Are QSBs?
Qualified Stock Brokers are entities flagged by SEBI based on:
- Trading volumes
- Client base
- Market share
- Past compliance track record
They act as the testbed for voluntary T+0 adoption.
How T+0 Differs from T+1
| Feature | T+1 Cycle | T+0 Cycle |
|---|---|---|
| Settlement Date | Next working day | Same day |
| Fund/Liquidity Lag | 1 day | Near-instant |
| Risk Exposure | Higher | Lower |
| Infra Requirement | Moderate | High – real-time sync |
Legal & Regulatory Insights
- SEBI has not made T+0 mandatory—it remains optional.
- SEBI’s direction aligns with global trends (like US plans for T+1).
- Faster settlements reduce systemic risk and protect investor interest.
Source: sebi.gov.in
Expert View
Market Infrastructure Expert says:
“T+0 is a tech challenge, not just a policy shift. This extension ensures readiness without risk.”
How It Impacts You
- Investors: Faster credit of shares/money
- Brokers: More infra investment, real-time reconciliations
- Regulators: Tighter risk monitoring and coordination
Summary Snippet (For Google)
SEBI has extended the deadline for optional T+0 settlement to November 2025 for qualified stock brokers, giving more time for infrastructure readiness and investor protection.
FAQs
Q. Is T+0 mandatory for all brokers?
No. It is optional and applies only to SEBI-flagged QSBs.
Q. Will T+0 benefit retail investors?
Yes—funds and shares get credited on the same day.
Q. Can brokers opt in before November 2025?
Yes. Early adoption is allowed on a voluntary basis.
CTA
Want help decoding SEBI circulars or filing stock market-related compliance?
Talk to Efiletax’s experts now →