Description

SEBI extends the timeline for Qualified Stock Brokers to implement necessary systems and processes for enabling investor participation in optional T+0 settlement cycle, with further guidance to be provided later.

Summary

SEBI has further extended the timeline for Qualified Stock Brokers (QSBs) to implement necessary systems and processes for enabling seamless investor participation in the optional T+0 settlement cycle. The previous deadline of November 01, 2025 has been postponed, with further guidance on the new timeline to be intimated at a later date. This extension follows challenges highlighted by QSBs in ensuring timely readiness of their systems.

Key Points

  • Timeline for QSBs to implement T+0 settlement systems extended beyond November 01, 2025
  • New deadline to be communicated through further guidance at a later date
  • Extension granted due to challenges faced by QSBs in ensuring system readiness
  • Applies to QSBs designated as such and meeting minimum active client parameters as of December 31, 2024
  • All other provisions of the original SEBI Circular dated December 10, 2024 remain unchanged
  • Market Infrastructure Institutions (MIIs) must take necessary implementation steps and amend relevant byelaws

Regulatory Changes

This circular modifies the implementation timeline specified in:

  • SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/172 dated December 10, 2024 (original circular introducing enhanced scope of optional T+0 settlement)
  • SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/58 dated April 29, 2025 (first extension to November 01, 2025)

The timeline extension applies specifically to paragraphs 3.3, 3.4, and 3.5 of the December 10, 2024 circular regarding QSB obligations.

Compliance Requirements

For Qualified Stock Brokers (QSBs):

  • Must put in place necessary systems and processes for enabling seamless investor participation in optional T+0 settlement cycle
  • Timeline extended; new deadline to be announced later
  • Applies to QSBs meeting minimum active client parameters as of December 31, 2024

For Market Infrastructure Institutions (MIIs):

  • Take necessary steps and implement required systems
  • Make amendments to relevant byelaws, rules, and regulations
  • Notify market participants and investors
  • Disseminate circular provisions on their websites

Important Dates

  • December 10, 2024: Original SEBI circular introducing enhanced T+0 settlement scope
  • December 31, 2024: Reference date for determining QSB qualification based on minimum active clients
  • April 29, 2025: First timeline extension granted (to November 01, 2025)
  • October 30, 2025: Current circular issued providing further extension
  • November 01, 2025: Previous deadline (now extended)
  • To be announced: New implementation deadline for QSB systems

Impact Assessment

Market Impact:

  • Delays full-scale implementation of optional T+0 settlement infrastructure across qualified brokers
  • Provides additional time for industry to ensure robust system readiness
  • May temporarily limit investor access to T+0 settlement facilities through certain QSBs

Operational Impact:

  • QSBs gain additional time to address technical and operational challenges
  • Reduces risk of system failures or inadequate infrastructure at implementation
  • Stock exchanges, clearing corporations, and depositories must continue coordination efforts

Investor Impact:

  • Potential delay in widespread availability of T+0 settlement option
  • Ensures better quality of service when systems are eventually implemented
  • Protects investors from potential issues arising from premature system deployment

Impact Justification

This circular extends a critical deadline for QSBs to implement T+0 settlement systems, directly impacting market infrastructure readiness and investor participation in the optional T+0 settlement cycle across equity cash markets.