SEBI Extends Timeline for QSBs to Enable Optional T+0 Settlement Systems

Circular No. 72; Dated: 30.10.2025

1. Background

The Securities and Exchange Board of India (SEBI), through its Circular dated December 10, 2024, had earlier introduced an optional T+0 rolling settlement cycle in addition to the existing T+1 settlement for the Equity Cash Markets.

This initiative forms part of SEBI’s ongoing efforts to enhance market efficiency, liquidity, and investor confidence by reducing the settlement period for trades.

2. Original Requirement for Qualified Stock Brokers (QSBs)

Under the 2024 circular, SEBI directed that Qualified Stock Brokers (QSBs)—those meeting the prescribed minimum client threshold as on December 31, 2024—must:

• Put in place necessary systems and processes to enable seamless participation of investors in the optional T+0 settlement cycle.
• Ensure readiness by the original effective date of May 1, 2025.

This requirement was aimed at ensuring that large brokers with significant market presence could efficiently support shorter settlement cycles without operational disruptions.

3. First Extension to November 1, 2025

Following industry feedback and stakeholder consultations with:

• Stock Exchanges,
• Clearing Corporations, and
• Depositories,

SEBI extended the compliance timeline for QSBs to November 1, 2025.

This extension was granted to allow QSBs adequate time to upgrade technological infrastructure, streamline back-office systems, and align risk management frameworks to support same-day settlements.

4. Further Extension and Ongoing Industry Consultations

Subsequently, several QSBs highlighted implementation challenges and the need for additional time to ensure the stability and interoperability of systems across intermediaries.

In light of these representations, SEBI has decided to further extend the timeline for QSBs to establish the required systems and processes for enabling seamless investor participation in the optional T+0 rolling settlement.

SEBI has stated that further guidance on the revised effective date will be issued separately after reviewing readiness levels and industry feedback.

5. Objective of the T+0 Settlement Framework

The optional T+0 settlement aims to:

• Enhance market liquidity by enabling faster fund and securities availability,
• Reduce counterparty and settlement risks,
• Leverage technological advancements for real-time settlement processing, and
• Align India’s equity markets with global best practices in trade settlement efficiency.

6. Way Forward

Market participants—including QSBs, Exchanges, and Clearing Corporations—are expected to continue collaborative efforts under SEBI’s supervision to ensure a smooth, secure, and phased implementation of the T+0 settlement framework.

The final implementation date and operational guidelines will be announced through a separate circular by SEBI.

7. Conclusion

While SEBI remains committed to introducing optional T+0 rolling settlement as a transformative reform in India’s equity markets, it has acknowledged the operational and technological complexities faced by Qualified Stock Brokers.

A revised timeline—beyond November 1, 2025—will be communicated in due course to ensure system readiness, investor protection, and market stability during the transition.

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