New revolution in stock market: T+0 settlement will be implemented from March, 2024

- The money will be credited on the same day you sell the shares

- Sebi's board meeting took far-sighted decisions after discussing several issues

Ahmedabad: As the influx of investors in the Indian stock market is reaching new heights day by day, now the regulatory body SEBI has also become determined to bring about a radical change in the market. Many issues have been discussed in Sebi's board meeting and farsighted decisions have been taken on many issues. Taking a revolutionary decision, SEBI has decided to start T+0 settlement facility in the country from next year.

The 'T+0' system i.e. same day settlement of shares can be implemented in the country by March, 2024. SEBI Chairperson Madhabi Puri Buch said that a roadmap has been prepared for this. An alternative system for instant settlement will also be introduced in a phased manner and both will run in parallel.

Buch said the brokers stressed the need for an infrastructure and technical pathway for immediate settlement, where the interim step should not be delayed by even an hour, but go straight from T+0. From the second year of T+0 settlement starting from March, almost instant settlement will also be implemented in the Indian stock market.

It may be noted here that India adopted T+1 settlement system in January this year, where settlement is done on the second day of trade. However, some market participants questioned SEBI's target and said that the new draft will create many problems when foreign investors are not yet settled in T+1 itself. Previously, in T+2 or T+3 settlement, a day or so time was given to convert dollars into rupees, but now in T+1, foreign investors have to convert dollars into Indian rupees one day before the deal, so in the future, T+0 or instant settlement will be a frequent problem in foreign fund flow. can affect

Delay in Amendment of Voluntary Delisting Rules

The market regulator's board meeting was also expected to approve the voluntary delisting rules. SEBI released a consultation paper on August 14, 2023 in this regard. The consultation paper stated that listed investment holding companies would have to provide true net internal value if they want to delist themselves from the stock exchange but contrary to everyone's expectations, SEBI did not approve the proposed delisting rules. Buch said that Sebi will assess more data before taking a final decision on approval of delisting rules, adding that existing data is insufficient.

Retail investors should not join the Gadria trend

Nowadays, new companies are constantly coming in the stock market. Investors are also rushing to invest in initial public offerings (IPOs) of companies. Godrio current is flowing in the market. This week alone (November 20 to 24), investors raised Rs. More than 2.60 lakh crores were invested by small and big investors. Regarding this, SEBI Chairperson Madhabi Puri Buch has advised retail investors to avoid this competition and be cautious. The SEBI chairman said that the method of determining the valuation of a company during an IPO is not fully transparent and fair. In such a situation, the right strategy for retail investors would be to allow the share prices of these companies to stabilize and invest in them after they hit the stock market.