Mumbai3 days ago
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The Securities and Exchange Board of India (SEBI) has now given permission to 500 companies for Same Day Settlement (T+0). The market regulator started this system from March 28 this year. At that time only 25 companies of both the stock exchanges i.e. BSE and NSE could settle the funds after buying and selling of shares in a day.
The new system will start from 31 January 2025. SEBI wants to speed up the settlement system by allowing more companies to do so. At present T+1 settlement system is prevalent in the market. That is, the day you sell the shares, the entire money will be credited to your account the next day.
Currently the Indian stock market works on T+1 settlement cycle.
Currently the Indian stock market works on T+1 settlement cycle for all shares. T+0 means settlement of purchase and sale of shares will happen on the same day. There was a T+5 settlement system in our country before 2002.
SEBI implemented T+3 settlement in 2002. T+2 settlement was implemented in the year 2003. The market continued to work on this system till the year 2021. After this the T+1 system was introduced. It was implemented in January 2023. Due to this, settlement of funds and shares started taking place within 24 hours.
What is T+1, T+2 and T+3 settlement?
Settlement system means transfer of shares to the buyer’s account and transfer of the amount of sold shares to the seller’s account. Indian stock exchanges currently follow T+1. This means that the funds and securities are credited to your account within 24 hours of order execution.
Suppose you sold shares on Wednesday. According to T+1, the money for these shares will be transferred to your account in 1 business day. If you have purchased shares then these shares will be credited to your demat account within 1 day. This same rule also applies in T+2 and T+3 settlements.
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Also read this market related news…
Investment in equity mutual funds declined by 14.1% in November: Inflow of large cap funds also declined by 26.3%, investment in small caps was ₹ 4,883.4 crore.
Total inflows into equity mutual funds in November 2024 stood at ₹35,927.3 crore, down 14.1% compared to ₹41,865.4 crore in October. At the same time, the inflow of large cap mutual funds has declined by 26.3%, from ₹ 3,452.3 crore in October to ₹ 2,547.9 crore in November.
However, small cap mutual funds have seen a 9% increase in inflows, from ₹3,772 crore in October to ₹4,112 crore in November. Mid cap mutual funds saw a marginal growth of 4.3% in inflows from ₹4,683 crore in October to ₹4,883.4 crore in November.
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