Description

SEBI extends the deadline for Qualified Stock Brokers to implement necessary systems for T+0 settlement cycle beyond November 01, 2025, with further guidance to be provided later.

Summary

SEBI has extended the deadline for Qualified Stock Brokers (QSBs) to implement necessary systems and processes for enabling 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 communicated at a later date. This extension follows feedback from QSBs regarding challenges in ensuring timely system readiness.

Key Points

  • Timeline for QSBs to implement T+0 settlement systems extended beyond November 01, 2025
  • New timeline will be communicated through further guidance at a later date
  • Extension applies to QSBs designated as of December 31, 2024 meeting minimum active client parameters
  • Decision made considering challenges highlighted by QSBs in ensuring system readiness
  • All other provisions of the original December 10, 2024 circular remain unchanged
  • Applies to recognized stock exchanges, clearing corporations, depositories, and registered stock brokers

Regulatory Changes

This circular modifies the implementation timeline specified in SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/58 dated April 29, 2025, which had set November 01, 2025 as the deadline for QSBs to put in place systems for T+0 settlement cycle participation. The original framework was introduced via SEBI Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/172 dated December 10, 2024, which enhanced the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets.

Compliance Requirements

For Market Infrastructure Institutions (MIIs):

  • Take necessary steps and implement systems for the provisions of this circular
  • Make necessary amendments to relevant byelaws, rules and regulations for implementation
  • Notify market participants including investors about these provisions
  • Disseminate the circular on their websites

For Qualified Stock Brokers (QSBs):

  • QSBs designated as of December 31, 2024 meeting minimum active client parameters will still need to implement necessary systems and processes for T+0 settlement cycle
  • Timeline for implementation extended beyond November 01, 2025
  • Must await further guidance on the new implementation deadline

Important Dates

  • October 30, 2025: Date of circular issuance
  • December 10, 2024: Original circular introducing enhanced T+0 settlement scope
  • December 31, 2024: Cut-off date for QSB designation and active client parameter assessment
  • May 01, 2025: Original implementation deadline (first timeline)
  • November 01, 2025: Extended implementation deadline (second timeline, now further extended)
  • To be announced: New implementation deadline for QSB system readiness

Impact Assessment

Market Impact: The extension provides additional time for market infrastructure to adapt to the T+0 settlement framework, reducing risk of implementation issues that could disrupt trading operations. The optional nature of T+0 settlement means existing T+1 settlement continues unaffected.

Operational Impact: QSBs gain additional time to develop and test systems required for seamless investor participation in T+0 settlement cycles. This reduces pressure on broker technology teams and allows for more robust implementation. Stock exchanges, clearing corporations, and depositories must continue preparations while awaiting the new timeline.

Investor Impact: Investors will need to wait longer before gaining access to T+0 settlement options through all QSBs. However, the extension aims to ensure better system quality and smoother user experience when implementation occurs.

Systemic Considerations: The circular demonstrates regulatory flexibility in responding to industry feedback about implementation challenges, balancing the goal of faster settlement cycles with practical readiness concerns across the broker community.

Impact Justification

Extends implementation timeline for T+0 settlement systems, providing relief to QSBs facing readiness challenges. Affects market infrastructure but does not introduce new requirements or immediate operational changes.