T+1 Settlement Cycle For All Futures And Options Stocks From January: Stock Exchanges

T+1 means that market trade-related settlements will need to be cleared within one day of the actual transactions taking place.

To bring in operational efficiency, stock exchanges on Wednesday said that all stocks, on which derivatives contracts are available, will be transitioned to the T+1 (trade plus one day) settlement cycle from January 2023.

Earlier, future and options (F&O) stocks were to be transitioned to the T+1 settlement in two batches -- December 2022 and January 2023, according to a joint statement issued by market infrastructure institutions (MIIs) -- stock exchanges, clearing corporations and depositories.

T+1 means that market trade-related settlements will need to be cleared within one day of the actual transactions taking place.

In September last year, the Securities and Exchange Board of India (Sebi) permitted stock exchanges to introduce a T+1 settlement cycle from January 1, 2022, on any of the securities available in the equity segment.