SEBI Board Meeting: No Changes in F&O Expiry, Enhancement in T+O Settlement

The board meeting of SEBI, held on 30 September 2024, came up with enhancement in the T+O settlement and many other bold moves were announced. One of the most debatable topics of yesterday’s SEBI meeting was the change in F&O expiry of benchmark Indices. However, the SEBI remains silent and no changes are rolled off in the F&O expiries. There is talk in the town that a draft on tightening derivative regulations will be released soon.

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SEBI: Enhancement in T+O Settlement

In the meeting SEBI also announced an enhancement to the optional T+0 trading cycle following the review of the beta version which rolled off earlier.

Board decided to increase the number of scrips eligible for trading under T+0 settlement from 25 to top 500 stocks based on market capitalization.

Also, all the registered brokers will have the opportunity to offer access to the optional T+0 settlement cycle to their clients and are permitted to charge differential brokerage fees for transactions conducted under this expedited settlement cycle.

In order to facilitate seamless participation in the optional T+0 settlement cycle, SEBI has mandated that brokers designated as Qualified Stock Brokers must establish systems to accommodate their clients effectively.

Additionally, these QSBs must meet a minimum threshold of active clients to qualify. Custodians are also required to implement the necessary systems. SEBI will provide an appropriate timeframe for implementation, which will be determined through consultations with all relevant stakeholders.

Optional Block Deal Window Mechanism

Board meeting mentioned, an optional Block Deal window mechanism will be introduced under the T+0 settlement cycle (operating from 8:45 am to 9 am), alongside the existing block windows under the T+1 settlement cycle.

However, the release noted that the earlier proposal to transition from optional T+0 settlement to optional instantaneous settlement is currently not under consideration. The optional T+0 settlement in the equity cash market will also continue to coexist with the existing T+1 settlement cycle.

Also Read | SEBI Revises Eligibility Criteria for Derivatives Market Stocks