Share Market in India: Now money will be available soon, this important change is going to happen in the stock market from January 27
Markets regulator SEBI has introduced T+1 (trade+1 day) settlement cycle. Under this, now the business in the Indian stock market will be settled in a day. This new rule of SEBI will come into effect from 27 January 2023.
What is the new rule?
According to the stock market regulatory body SEBI, from the new year any stock exchange can choose T+1 settlement cycle for any share for all shareholders. Understand in simple language, you will get the money only after one day of the business day after selling the shares. This shorter settlement cycle would be more convenient. This is because it will speed up the rotation of money.
What will change from T+1
After the implementation of T + 1 system, the trading cycle in the stock market will be shorter than before. In case of purchase on behalf of the investor, the shares will be credited to his account within 24 hours. Whereas, if someone sells the shares, the money will come into his account in 24 hours. This will be applicable to all large cap and blue cap stocks.
What will be the effect of T+1
After the T+1 system is implemented, people will get money faster than before. This can also increase the liquidity in the market and the margin requirement will also come down.
this is the current rule
At present, T+2 settlement cycle is in force in the country since April 2003. That is, when you sell a share, that share gets blocked immediately and you get the amount two days after the trading day (T+2 day). Earlier T+3 settlement cycle was going on in the country.
Was implemented for the first time on February 2022
For the first time on February 25, 2022, the T+1 system was implemented by the regulators in the 100 smallest shares by market value in the stock market. Thereafter, from March 2022, the settlement of shares is being changed from T+2 to T+1 in a graded manner on a monthly basis. PLC/GT
