India's T+0 settlement cycle rollout faces indefinite delay as brokers wrestle with readiness issues. Once hailed as a game-changer, the T+0 system,allowing same-day trade settlements,has now seen three deadline extensions from Securities and Exchange Board of India (SEBI).
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) launched a beta version in March 2024. It promised trading efficiency. But shifting from T+1 to T+0 is tough. Brokers cite high costs and complex operations.
SEBI initially set May 1,2025, as the launch date, later moving it to November 1, 2025 . Now,SEBI says timeline will change again. Details are pending. An October circular mentioned the struggles brokers face in updating their systems .
Rajesh Singla, CEO at Alpha AMC, highlighted broker challenges. Managing both T+0 and T+1 for same securities is hard, he said,as many lack the necessary infrastructure . "T+0 is a good idea," Singla said,"but brokers face multiple challenges."
For T+0, trades must be done by 1:30 PM,funds in by 4:30 PM. This excludes afternoon trades, pushing investors to decide fast,unlike T+1. Plus,T+0 excludes institutional and foreign investors, needing same-day forex and securities settlement.
Singla noted without institutional investors,T+0 trading volumes will stay low,even with retail interest. He suggested brokers need better infrastructure, maybe with SEBI support or incentives.
Anand James, Chief Market Strategist at Geojit Investments, agreed. No incentives for T+0 buyers,he said. Buyers lack urgency to arrange same-day funds,unlike sellers. "Hardly any incentive for long-term investors," he added.
Day and high-frequency traders, who already thrive on quick capital turnover, aren't much swayed by T+0. They use margin trading,where same-day benefits are less impactful.
The uncertainty over T+0's future lingers. Brokers still face hurdles,leaving the push for a more efficient trading environment in question .
