We all know that SEBI(Securities and Exchange Board of India) has the right to accept/deny trade settlement regulations. As a stock exchange regulator, SEBI advises to settle trade settlements within T+1 Days; which is T+2 Days; as of now.
This decision is being taken by considering depositary participants(DP’s), Clearing Corporations consent and on their advice, SEBI implements this T+1 settlement decision.
It is of the voluntary action to the accept or deny this order, based on the stock exchanges discretion. But many investors are welcoming this order as trade settlements are being settling within T+2 Days till now and if this order(T+1 days) comes into practice, they would be benefited as Their trade settlements are credited in their demat a/c’s with T+1 Days.
If this order is going to be accepted, the notification should be disclosed in their websites besides giving notice to the investors 30 days before the implementation of this order.
Stock exchanges have the right to opt for either T+1 or T+2 days settlement option, but once the settlement decision is taken from either of the two options, it should not altered for the next 6 months.
If the exchange wants to change the settlement option, it should be possible after 6 months that too by giving notice before 30 days.
This are the regulations being brought by SEBI and if you want to know the latest information and updates, keep in touch with bank-info.in site regularly!