Money will come to the account immediately after selling the shares
Buch said that the day is not far when the settlement of trades in the stock market will be done almost instantly. SEBI is working closely with all the stakeholders to create a quick transaction settlement i.e. T+0 system in the stock market. This will reduce the time taken for settlement of trades. India is among the first countries in the world to adopt T+1 settlement. This means that if an investor buys shares, the shares are transferred to his demat account the very next day or if an investor sells shares, the money is credited to his bank account the very next day.
How much saved from T+1
Buch said investors have saved Rs 3,500 crore annually by adopting T+1 settlement for stocks and through ASBA (Application Supported by Blocked Amount). Buch said that the allotment of units of mutual funds will also happen soon to the investors. Buch said that the focus is on market regulation, development. Also, special attention is being paid to protect the interests of the investors. Capital formation is the main objective of the capital market. Most of the developed countries of the world have T + 2 system while India had fully implemented T + 1 system from January this year.
SEBI is also reviewing the delisting norms. Buch told that soon new consultation papers will be issued regarding this. The process of removing the shares of a company from the exchange is called delisting. In simple words, after delisting, trading cannot take place in the stock exchange. Although SEBI Chief refused to say anything more on this.