Transforming Trade: An In-Depth Analysis of Settlement Periods and the T+0 Reform in India

Abstract​

The stock market is an important part of India's economic growth narrative, as it has a big impact on the process of transferring money and property from the people who have them to those who need shares. The settlement process — the phase in the financial cycle where actual assets and money are exchanged — is a vital element of this intricate system. Talking about its movement from delayed settlements to the present T+1 model, we find that the Securities and Exchange Board of India (SEBI) is playing a very important role in this revamp. SEBI's wide objectives of the rules and regulations, preventing any unusual occurrences in markets or investor lives has earned it boutique-like (offshore hedge funds ) recognition. However, the biggest value add continues to be in its attempts at making settlement more efficient and easier.

​

One of the main milestones was a recent SEBI consultation paper, which shares how plans for an immediate settlement system will improve market efficiency. Examining the fine detail of settlement methodologies, this research paper covers areas such as how settlements work and who were/are involved over time amongst other things. One of the
key areas where my colleagues and I have focused our study was SEBI's recent consultation paper which set out a roadmap to reshape the settlement landscape. Finally, we examine how the proposed Instant In this piece, we acknowledge the good things done by SEBI in promoting reforms that benefit various stakeholders including investors, exchanges and government and also address potential market dynamics issue of doing too much.

​

This work presents a comprehensive analysis of the proposal, serving as an effective learning tool while highlighting both its advantages and drawbacks. This contributes to a well-informed decision-making environment within the financial ecosystem.