Currently Investors of both the exchanges NSE(National Stock Exchange)and BSE(Bombay Stock Exchange)are settling their purchase orders and selling options with T+2 Days(Trade+2 Working days). This deal makes investors to wait for T+2 days to receive cash from their sale proceeds and their purchased shares to credit into their demat a/c.
But recently one month back, SEBI modifies this rule and gives an”Option” to choose either T+1 or T+2 days settlement system to the investors. This is brought in the modification of the market regulations of implementing T+5 days in 2002 to T+3 days and T+3 days to T+2 days in 2003.
Speaking on the latest amendment of implementing T+1 days, SEBI chairman Ajay Tyagi affirms- “As Indian banking system is undergoing many banking reforms, it is the right of the investor to receive the trade proceeds as early as possible. With a view of this, SEBI introduced this “Optional”Trade Practice, which is going to be made mandatory in both the exchanges as per the response. As of now, there won’t arise any liquidity issues if the investor avail either of the two options. The investor is free to choose either of the two”.
As per SEBI’s chairman affirmation this T+1 settlement is optional, but it is going to be implemented sooner in both the exchanges depending on the investors response.
bank-info.in 