The Indian stock market is undergoing a significant shift with the introduction of the T+0 settlement for you to invest in stocks. The Bombay Stock Exchange (BSE) has unveiled a list of 25 stocks that will be the pioneers of this exciting new system, allowing for same-day settlement of trades. Let's delve deeper into what T+0 settlement means and explore the list of scrips included in this initial phase.
Traditionally, stock trades in India settled in T+2 format, meaning the exchange and delivery of shares occurred two business days after the trade execution. T+0 settlement revolutionises this process by enabling the trade to be settled on the same day it's executed. This faster settlement cycle offers several potential benefits:
The BSE has released a curated list of 25 stocks that will be eligible for T+0 settlement starting from [date when T+0 starts] This list includes a diverse range of companies from various sectors:
This initial phase with a limited set of scrips allows the market to adapt to the T+0 system. Investors interested in participating in T+0 trading for these scrips should ensure their brokers are equipped to handle this faster settlement cycle. It's also crucial to carefully assess your risk tolerance, as T+0 can potentially increase volatility.
The introduction of the T+0 settlement marks a significant step towards modernising the Indian stock market. The success of this initial phase with the listed scrips will pave the way for potentially expanding T+0 to a wider range of stocks in the future. This will enhance the experience of stock investments for people across the country.
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