NSE defers T+0 rolling settlement cycle in capital market until further notice

The National Stock Exchange (NSE) has deferred the implementation of T+0 (same-day transaction settlement) rolling settlement cycle in the capital market segment. 

In a circular on Friday, NSE announced, “Trading in T+0 rolling settlement cycle in the Capital Market segment Go LIVE deferred. This is in reference to Exchange circular NSE/CMTR/63154 dated July 31, 2024, regarding trading in T+0 rolling settlement in capital market.”

NSE further clarified, "Members are requested to note that the aforesaid circular has been deferred until further notice. The revised date shall be communicated via a separate circular."

Under the T+0 system, trades involving shares are settled on the same day they occur, with shares being transferred to the buyer's account and funds deposited in the seller's account on the day of the trade.

In a related development, the Securities and Exchange Board of India (SEBI) has reduced the number of reporting formats to 23 from over 200, introducing unified distilled file formats. These formats conform to International Organization for Standardization (ISO) standards, and SEBI expects the change to save 2 billion rupees for the market ecosystem over the next five years by lowering operational expenses.

SEBI stated that the new standardized format has improved ease of business and operational efficiency. Previously, trading members, clearing members, and depository participants had to file multiple reports daily, exceeding 200 formats. The reduction simplifies this process significantly.

The regulator also noted that the streamlined reporting will help financial technology firms lower integration costs with market infrastructure institutions, making the interface between institutions and members interoperable without additional development costs. This rationalization will improve the efficiency of regulatory oversight and facilitate smoother information exchange between market participants.