T+0 cycle: These 25 stocks will be eligible for same-day settlement cycle from tomorrow. What changes and what it means?

Bajaj Auto, Bharat Petroleum and State Bank of India are among 25 stocks which will be eligible for optional same-day settlement starting from March 28, the Bombay Stock Exchange (BSE) said. Currently, Indian stock markets operate on a T 1 settlement cycle for all stocks.

What is T1 settlement?

Read more: Wockhardt share price hits upper circuit of 5% as it raises ₹480 crore via QIP: What’s happening

Under this process, purchase and sale of shares reflects in the demat accounts of investors one day after the transaction.

Hindustan Times – your fastest source for breaking news! Read now.

What is the new T 0 settlement?

The new T 0 settlement cycle will reduce transactional risks and enhances market efficiency as it will provide immediate liquidity to investors. This means that there will be increased trading opportunities and reduced settlement risks for investors.

Read more: Deepinder Goyal on ‘pure veg’ fleet: Zomato’s 75% orders vegetarian, didn’t expect backlash

How will T 0 settlement work?

The T 0 settlement will be optional for 25 stocks and will be applicable only for trades executed between 9:15 a.m. and 1:30 p.m, markets regulator Sebi said.

As per BSE, trading in T 0 cycle will be subject to a price band of 100 basis points above or below prices under the T 1 cycle, according to BSE.

Here’s a complete list of stocks eligible for T 0 settlement:

Read more: Tata Group stock rallies 5% after falling for 11 sessions: What changed and what to expect

1. Ambuja Cements Ltd
2. Ashok Leyland Ltd
3. Bajaj Auto Ltd
4. Bank of Baroda
5. Bharat Petroleum Corporation Ltd
6. Birlasoft Limited
7. Cipla Ltd
8. Coforge Limited
9. Divis Laboratories Ltd
10. Hindalco Industries Ltd
11. Indian Hotels Co.Ltd
12. JSW Steel Ltd
13. LIC Housing Finance Ltd
14. LTI Mindtree Limited
15. MRF Ltd
16. Nestle India Ltd
17. NMDC Ltd
18. Oil and natural gas corporation
19. Petronet Lng Ltd.
20. Samvardhana Motherson International Ltd
21. State Bank of India
22. Tata Communications Ltd
23. Trent Ltd
24. Union Bank of India
25. Vedanta Limited

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs

• ABOUT THE AUTHOR

  

  Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.