Description

SEBI extends the deadline for Qualified Stock Brokers to implement systems for T+0 settlement cycle beyond November 01, 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 mandatory systems and processes for the optional T+0 settlement cycle. The original deadline of May 01, 2025 was previously extended to November 01, 2025, and has now been extended again with the new deadline to be communicated at a later date. This extension is based on challenges highlighted by QSBs in ensuring timely readiness of systems.

Key Points

  • Timeline for QSBs to implement T+0 settlement systems extended beyond November 01, 2025
  • Further guidance regarding the new timeline will be intimated at a later date
  • Extension granted due to challenges in ensuring timely readiness of systems
  • Applies to stock brokers designated as QSBs who meet minimum active client parameters as of December 31, 2024
  • All other provisions of SEBI Circular dated December 10, 2024 remain unchanged
  • This is the second extension granted (first extension moved deadline from May 01, 2025 to November 01, 2025)

Regulatory Changes

SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/172 dated December 10, 2024 originally mandated that QSBs put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle by May 01, 2025.

SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/58 dated April 29, 2025 extended this deadline to November 01, 2025.

The current circular (I/72/2025 dated October 30, 2025) provides a further extension beyond November 01, 2025, with the specific new deadline to be communicated later.

Compliance Requirements

Market Infrastructure Institutions (MIIs) must:

  • Take necessary steps and put in place necessary systems for implementation
  • Make necessary amendments to relevant byelaws, rules and regulations wherever required
  • Bring the provisions of this circular to the notice of market participants (including investors)
  • Disseminate the circular on their websites

Qualified Stock Brokers (QSBs) must:

  • Continue preparation for implementing systems and processes for T+0 settlement
  • Await further guidance on the revised implementation timeline
  • Ensure capability for seamless participation of investors in optional T+0 settlement cycle

Applicability:

  • Stock Exchanges
  • Clearing Corporations
  • Depositories
  • Registered Stock Brokers (specifically QSBs)

Important Dates

  • December 10, 2024: Original SEBI circular enhancing scope of optional T+0 settlement
  • December 31, 2024: Reference date for determining QSB qualification based on minimum active clients
  • May 01, 2025: Original implementation deadline (now extended)
  • April 29, 2025: First extension circular issued
  • November 01, 2025: Previously extended deadline (now further extended)
  • October 30, 2025: Current SEBI circular date
  • October 31, 2025: NSE circular date
  • To be announced: New implementation deadline

Impact Assessment

Market Impact:

  • Delays the broader rollout of T+0 settlement cycle in equity cash markets
  • Provides relief to QSBs facing technical implementation challenges
  • May impact investor expectations for faster settlement capabilities
  • Demonstrates regulatory flexibility in response to market feedback

Operational Impact:

  • QSBs get additional time to develop and test systems for T+0 settlement
  • Reduces pressure on brokers to rush implementation, potentially improving quality
  • Market Infrastructure Institutions need to adjust their readiness timelines
  • May require coordination across multiple stakeholders (exchanges, clearing corporations, depositories)

Compliance Impact:

  • QSBs must continue working toward implementation but have extended timeline
  • Uncertainty around exact new deadline may complicate project planning
  • All other provisions of the December 2024 circular remain in effect

Legal Authority: Circular issued under Section 11(1) of SEBI Act 1992 read with Regulation 51 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 and Section 26(3) of Depositories Act, 1996 read with Regulation 97 of SEBI (Depositories and Participants) Regulations, 2018.

Impact Justification

Critical regulatory timeline extension affecting all Qualified Stock Brokers and the implementation of T+0 settlement cycle, a major market infrastructure change