SEBI extends deadline for brokers to implement T+0 settlement framework

The Securities and Exchange Board of India (SEBI) has granted another extension to Qualified Stock Brokers (QSBs) for implementing the required systems and processes for the optional T+0 rolling settlement in the equity cash market.

The decision follows industry feedback indicating that many QSBs are facing operational and technological challenges in meeting the earlier deadline of November 1, 2025, which itself was an extension from the initial May 1, 2025, timeline.

In its latest circular, SEBI stated, “Considering the challenges highlighted by QSBs in ensuring timely readiness of systems on or before November 1, 2025, and requests for an extension to ensure smooth implementation, it has been decided to extend the timeline for QSBs to put in place the necessary systems and processes for enabling seamless participation of investors in the optional T+0 settlement cycle.”

The regulator said the new implementation date would be communicated later, allowing brokers sufficient time to test and integrate the required technology infrastructure to support same-day trade settlements. The extension is aimed at ensuring that the transition to T+0 settlement is smooth, without causing operational disruptions or compromising investor convenience.

What is T+0 settlement?

Under the T+0 settlement mechanism, trades are settled on the same day they are executed, rather than the next day under the current T+1 cycle. The move aims to enhance market liquidity, allowing investors to receive their funds or shares within hours of trading.

Same-day settlement also helps reduce counterparty risk and default probabilities, as transactions are completed almost instantly. Faster settlement cycles are expected to improve market efficiency, accelerate clearing processes, and enhance investor confidence.

Regulatory context

The optional T+0 settlement framework was first introduced under SEBI’s December 10, 2024 circular, which expanded the settlement options available to market participants while retaining the T+1 cycle as the default mechanism.

In April 2025, SEBI had already extended the first deadline from May 1 to November 1, 2025, acknowledging that many QSBs needed additional time to upgrade their back-end systems and ensure compliance.

The latest extension underscores SEBI’s pragmatic stance—balancing technological readiness with the goal of advancing India’s capital market infrastructure. By allowing more time for preparation, SEBI aims to ensure smooth execution and investor protection, paving the way for a more efficient and future-ready trading ecosystem.