NSE defers T+0 rolling settlement cycle, exchange to conduct live trading from DR site from Sept 30-Oct 1

The revised date shall be communicated via a separate circular, it said. 

Further, in a separate circular, the exchange said that it will be conducting trading sessions (Mock & Live) from its Disaster Recovery (DR) site from September 28 to October 3. 

The circular added, "Members are requested to note that the exchange contingency tests shall be carried out between 12:00 PM and 01:00 PM for mock trading on Saturday, September 28, 2024. Members are requested to plan their activities accordingly."

For connecting to the primary/DR site, no changes in NEAT adapter settings are required. Settings of live session as of Friday, September 27, 2024, in NEAT Adapter shall be retained to connect to all the above sessions of the primary/DR site, it said further.

Currently, settlements occur in a T+1 settlement cycle, in which securities and funds are credited to a demat account the day after the trade.

India only transitioned to the T+1 cycle for all listed companies in 2023.

What is T+0 settlement?

T+0 settlement is a system that allows for the same-day settlement of trades in the stock market. Here, "T" stands for the day of the trade, and the "0" stands for the day of settlement. This means that the shares are transferred to the buyer's account and money is deposited into the seller's account on the same day the trade has been executed. 

SEBI had stated that the shorter settlement cycle will further free up capital in the securities market, enhance risk management by clearing corporations, and allow investors to have better control of their funds and securities.

Regarding concerns about liquidity fragmentation, the discussion paper stated that there will be participants who can access both T+0 (or instant settlement) and T+1 markets and will bridge price and liquidity gaps between the two segments.