T+1 settlement for all F&O stocks from January 2023

NEW DELHI: Making the settlement cycle shorter and quicker, stock exchanges on Wednesday announced that all F&O stocks will be transitioned to T+1 or ‘Trade plus one’ settlement cycle from January 2023.
“To bring in operational efficiency and ease for market participants, it has now been decided that all stocks on which derivatives contracts are available will be transitioned to T+1 settlement in a single batch i.e., in January 2023 instead of two separate batches,” said a joint statement by BSE, NSE & MSE.
Under the T+1 settlement cycle, investors get their money or shares delivered within 24 hours.
Earlier, F&O stocks were to be transitioned to the T+1 settlement in two batches – December 2022 and January 2023.
In the first phase of the rollout of T+1 in February this year, 100 stocks based on the lowest market capitalisation on the NSE were put under the new settlement cycle.
Thereafter, from March 2022 onwards, on the last Friday of every month, the next bottom 500 stocks from the list of stocks ranked, are being made available for introduction to T+1 settlement every month till January 2023.

“Accordingly, exchanges will revise the original schedule for transition of stocks to T+1 settlement and issue the circular informing the list of stocks to be transitioned in December 2022 and January 2023,” the statement said.
In April 2003, Sebi had shortened the settlement cycle from T+3 rolling settlement to T+2.