SEBI New Regulations in Stock Market Regarding Instant Settlement of Share Transactions; Trading rules will change in the market, SEBI is preparing to implement a new system
New rules to come in the stock market
Markets regulator Sebi is working on a T+0 mechanism for instant settlement of trades in the stock market, a process that will be faster than the current system of T+1 settlement after the trading day, Sebi Chairman Madhabi Puribuch said on Monday. “India is the first major economy to introduce a T+1 settlement system,” the Sebi chief said, adding that the move helped free investors of around Rs 10,000 crore of excess money (margin) from the system, he added.
Anil Ambani’s shares fell from Rs 2,500 to Rs 155; Buy what the experts say!
T+2 settlement system in global market
Most of the developed markets globally are working on the T+2 system while India is a leader in the T+1 system which was fully implemented by the end of January this year. According to market analysts, highly developed payment mechanism and developed stock transfer process by depositories in India will facilitate quick settlement.
The ‘priceless jewel’ of the stock market; Rakesh Jhunjhunwala’s fortunes have changed, he is still earning handsomely
Meanwhile, Sebi also said that instead of the current system of reverse book-building mechanism, it may allow delisting of stocks at a fixed price. Under the current system, shareholders are allowed to bid on the price at which they are willing to divest their shares during the delisting offer. Meanwhile, SEBI will issue a discussion paper on this and seek feedback from stakeholders, the SEBI chairman said.
