Here’s the list of 25 stocks available for trading in T+0 basis from March 28

A day before the much-awaited T+0 settlement cycle – beta version for now -- kicks in, BSE has released the list of 25 stocks that will be available for trading and settlement in the T+0 mechanism.

According to a circular issued by BSE, the 25 companies whose shares would be available for trading in the same day settlement mechanism would include: Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Bharat Petroleum Corporation, Birlasoft, Cipla, Coforge, Divis Laboratories, Hindalco Industries, Indian Hotels Company, JSW Steel, LIC Housing Finance, LTIMindtree, MRF, Nestle India, NMDC, Oil And Natural Gas Corporation, Petronet LNG, Samvardhana Motherson International, State Bank Of India, Tata Communications, Trent, Union Bank Of India and Vedanta.

Last week, capital markets regulator the Securities and Exchange Board of India (Sebi) stated in a circular that the new framework would be introduced for a limited set of 25 stocks and also a limited set of brokers.

This assumes significance as work related to the introduction of a shorter settlement cycle was happening for many months now with all stakeholders of the capital market, especially market infrastructure intermediaries (MIIs) like exchanges, depositories and clearing corporations, were working together to reduce the settlement cycle from the current T+1 to same-day and ultimately move towards instant settlement.

“The significant evolution of technology, architecture and capacity of MIIs, presents opportunities for further advancing clearing and settlement timelines. Further, India’s depository ecosystem has visibility of individual client level holdings in digital form, and so has the ability to effect immediate transfer of securities and also India’s payments and settlements ecosystem has long allowed for real time transfer of funds,” stated the Sebi circular issued last week.

“A shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors and strengthen risk management at clearing corporations and the overall securities market ecosystem,” it added.

The Sebi circular further stated that the MIIs will have to disseminate on a periodic basis, the list of brokers that are participating in the beta version of T+0 settlement cycle on their websites and also provide a fortnightly report on the progress of activities in the beta version of T+0 settlement cycle till further direction.