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Informist, Friday, Sep 27, 2024

 

--NSE defers optional T+0 settlement for orders with custodian code 

 

MUMBAI – The National Stock Exchange of India Ltd has deferred the implementation of the optional T+0 rolling settlement cycle for orders with the custodial participant in the capital market segment, which was set to come into effect from Monday, until further notice, the exchange said in a circular today. Typically, trades executed by foreign portfolio investors carry the custodial participant code. In T+0 settlements, the trades are cleared and settled on the same day.

 

The NSE currently follows a T+1 rolling settlement cycle for all trades and offers an additional, optional T+0 rolling settlement for retail investors. NSE and BSE had launched a beta version of T+0 rolling settlement in March this year for clients of select brokers and 25 stocks. The clients of these brokers who do not settle through custodians and which pre-dominantly comprise of FPIs were excluded.

 

The NSE had issued a circular in July saying that optional T+0 settlement cycle will be permitted for orders having  custodial participant code from Sep 30. The custodian participant code is a unique code allotted to a custodian or clearing member for a particular constituent like foreign portfolio investment and eligible foreign investors.  End

 

Reported by Ayush Kumar

Edited by Ashish Shirke

 

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