SEBI President Ajay Tyagi has said that the T+1 payment cycle will protect investors’ interests
Head of Securities and Exchanges of India (SEBI) Ajay Tyagi said the decision to execute the trade plus one payment cycle (T+1) in a phased manner starting from February 2022 will go goes a long way in protecting the interests of investors.
In addition, the market regulator has taken some regulatory measures in the past to protect investors, he said at a function at the India International Trade Fair.
These measures include the introduction of a prepaid escrow framework, risk measurement, e-KYC, and protection of customer collateral through a pledge-return mechanism, Mr. Tyagi added.
“The decision to make T+1 (trading plus one) payments in phases starting from February 2022 will be a big step forward in protecting the interests of investors,” he said.
T+1 means that payments related to market trade will need to be completed within one day of the actual transactions taking place. Currently, transactions on Indian stock exchanges will be settled in two business days after the transaction is made (T+2).
The stock exchanges – NSE and BSE – announced earlier this month that they would be implementing a phased T+1 settlement cycle starting February 25, with the bottom 100 shares in price. market value.
Thereafter, 500 shares will be added based on the same market value criteria from the last Friday of March and so on each subsequent month.
The announcement comes after SEBI in September allowed stock exchanges to introduce a T+1 settlement cycle from January 1, 2022 for any securities available in the equity segment. own.
