BSE brings in beta version of T+0 settlement from March 28. A 12-point guide for investors

The BSE will ring in trading under the T+0 settlement from March 28. The market timing will be continuous between 9:15 a.m. and 1:30 p.m, it said in a notification, adding that all charges applicable for T+1 settled securities will apply for T+0 settled securities.

The BSE notification comes after Sebi on Thursday put in place a framework to introduce the beta version of the T+0 trade settlement cycle on an optional basis. This option will be available for a limited set of 25 scrips and with a limited number of brokers.

This will be in addition to the existing T+1 settlement cycle in the equity cash market.

"Trading members are requested to note that the Exchange shall introduce trading in securities under the T+0 settlement mechanism with effect from Thursday, March 28, 2024," the BSE notice said. T+0 prices shall not be considered in the Index calculation. T+0 cycle is settlement on the same day.

The BSE also released parameters for the beta version of the T+0 settlement:

1] Scrip ID/ Symbol: The Scrip ID shall be the same as that of the corresponding T+ duly security suffixed by the character “#" E.g.: HINDMOTORS#;

2] Group: Same as corresponding T+1 security;

3] Tick Size: Same as corresponding T+1 security;

4] Market Lot: Same as corresponding T+1 security;

5] Order Type: End of Day/Session, Immediate or Cancel (IOC), Market & Limit Order;

6] Order matching: Anonymous order book. Continuous matching with Price – Time priority;

7] Price Band: Price band of +/- 1% (100 Basis points) based on the Close Price of corresponding T+1 settled security, which will be re-calibrated throughout the trading hours after +/- 0.5% (50 basis points) movement in the LTP of corresponding T+1 settled security in the normal market;

8] Eligible Members: All members eligible to trade in the Equity segment;

9] Market Timings: 09:15 hrs to 13.30 hrs;

10] Client code modification window: Till 13:45 Hrs;

11] Eligible Client Type: All types of clients excluding clients settling through custodians;

12] Trading Sessions:

a) One Continuous session from 09:15 hrs to 13.30 hrs.

b) No Pre-open/special pre-open/block/auction/post-close session.

c) Trading in T+0 scrips shall not be available during the settlement holiday.

d) No Trading on the Ex-date of any corporate action in the corresponding T+1 settled security (including scheme of arrangement).

e) Trading in T+0 scrips shall not be available during the Index rebalancing day of corresponding T+1 Security.