SEBI Approves Beta Version of T+0 Settlement, Eases Norms for FPIs

Indian market regulator SEBI has approved the launch of a beta version of the T+0 Settlement on March 28, 2024. After the recent board meeting, SEBI announced a new and optional settlement cycle.

The Beta version of optional T+0 Settlement is for a limited set of 25 scrips and within a limited set of brokers. The SEBI Board will review the progress by the end of 3 months and 6 months, then the Board will decide further course of action. 

T+0 Settlement means that shares and funds of a particular transaction will get settled on the same trading day. This facility will go live from March 28, 2024. 

Presently, Indian markets were operating at a T+1 settlement cycle. This T+1 Settlement cycle was introduced in 2021, implemented in phases and final phase completed in January 2023. Now, T+1 Settlement will be made available soon. However, shorter settlement cycle may lead to increase in the liquidity and lower risk. 

On Friday, March 15, 2024, SEBI eases disclosure norms for certain Foreign Portfolio Investors (FPIs) and facilitates the ease of doing business for companies going public. 

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SEBI Eases Disclosure Norms For FPIs

SEBI approved a proposal to exempt additional disclosure requirements for Foreign Portfolio Investors having more than 50% of their Indian equity AUM in a single corporate group. 

In terms of timeliners, the disclosures by the FPI are categorized into buckets. Type 1 and Type 2. The material changes in Type 1, shall continue to be informed by the FPI to their designated depository participants within 7 seven working days of the occurrence of the change.

Other material changes in Type 2, shall be informed with supporting documents by the FPI to their DPP within 30 days of such change. 

Another move for the ease of doing business is Foreign Portfolio Investors registrations that expire due to non-payment of fees. SEBI will now allow them to be reactivated within 30 days from such expiry. 

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