BSE and the National Stock Exchange (NSE) will roll out same-day settlement of securities for the cash equity market. The bourses have put out a list of 25 common scrips that will be settled on the same day on an optional basis. These are all large-cap names and include Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, Cipla, Divi’s Laboratories, Hindalco Industries, JSW Steel, LIC Housing Finance, LTIMindtree, MRF, Nestle India, SBI, and Vedanta. However, it puzzled market participants, as Reliance Industries, Infosys, and TCS did not figure on the list. Besides, the list also featured low liquid counters such as MRF (6-month average volume is 399 shares on BSE) and actively traded ones such as Union Bank (six-month average: 19.4 lakh shares). The exchanges haven’t spelt out a criteria for selecting these scrips or the names of brokers who will facilitate T+0 settlement. The transition to T+1 settlement from T+2 was also done in phases but with the stocks with the least market capitalisation being included first.
 

A shortened settlement cycle will bring cost and time efficiency, transparency in charges to investors, and strengthen risk management at clearing corporations and the overall securities market ecosystem.

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