Description

SEBI extends the deadline for Qualified Stock Brokers (QSBs) to implement systems for optional T+0 settlement cycle beyond November 1, 2025, with further guidance to be provided later.

Summary

SEBI has issued a further extension of the timeline for Qualified Stock Brokers (QSBs) to implement necessary systems and processes for enabling investor participation in the optional T+0 settlement cycle. The deadline, previously extended to November 1, 2025, has been postponed indefinitely with further guidance to be provided at a later date. This extension follows challenges highlighted by QSBs in ensuring timely system readiness.

Key Points

  • Timeline for QSBs to implement T+0 settlement systems extended beyond November 1, 2025
  • Further guidance on the new deadline will be intimated at a later date
  • Extension granted due to challenges in ensuring timely readiness of systems
  • Applies to QSBs who met the minimum active client parameter as of December 31, 2024
  • All other provisions of the original December 10, 2024 SEBI circular remain unchanged
  • Stock exchanges, clearing corporations, and depositories must implement necessary systems and amend bylaws

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 1, 2025)

The regulatory framework for optional T+0 settlement cycle remains in place, but the mandatory implementation deadline for QSBs has been postponed pending further guidance.

Compliance Requirements

For Qualified Stock Brokers (QSBs):

  • Must eventually implement systems and processes for enabling seamless investor participation in optional T+0 settlement cycle
  • QSBs are those who met minimum active client parameters as of December 31, 2024
  • New compliance deadline to be communicated later

For Market Infrastructure Institutions (Stock Exchanges, Clearing Corporations, Depositories):

  • Take necessary steps and implement required systems
  • Make necessary amendments to bylaws, rules, and regulations
  • Bring provisions to the notice of market participants and investors
  • Disseminate information on their websites

Important Dates

  • October 30, 2025: Date of this circular extending the timeline
  • November 1, 2025: Previously scheduled deadline (now postponed)
  • December 31, 2024: Reference date for determining QSB qualification based on active clients
  • May 1, 2025: Original implementation date from the December 2024 circular
  • To be announced: New deadline for mandatory QSB system implementation

Impact Assessment

Market Impact:

  • Delays the full-scale rollout of optional T+0 settlement infrastructure across all QSBs
  • Provides relief to brokers facing technical implementation challenges
  • May impact investor access to faster settlement cycles depending on their broker’s readiness
  • Optional T+0 settlement continues to be available where systems are ready

Operational Impact:

  • Gives QSBs additional time to develop, test, and implement complex settlement systems
  • Allows for smoother implementation by addressing systemic readiness concerns
  • Stock exchanges and clearing corporations must continue preparation efforts
  • Market participants should await further guidance on revised timelines

Compliance Impact:

  • Reduces immediate compliance pressure on QSBs struggling with system readiness
  • Maintains regulatory expectation of eventual full implementation
  • All other provisions of T+0 settlement framework remain enforceable

Impact Justification

High importance as this affects all Qualified Stock Brokers' readiness for T+0 settlement implementation. High impact due to extension of a major market infrastructure upgrade affecting trading operations and investor participation in faster settlement cycles.