Launch of T Plus Zero Settlement


Launch of T Plus Zero Settlement

February 20, 2024
Launch of T Plus Zero Settlement

Imagine you invested in the stock market via a broker or any broking app. But now you are in dire need of money and want to liquidate (as in sell off your existing stocks). So, you quote a price in the stock’s price range and wait for the trade to execute. If your trade is executed (let’s say today), then today is known to be the trade date. Before the introduction of the T+0 Settlement mechanism in India, the stock market followed a T+1 settlement cycle. This means that the trade is settled (i.e., the day funds are transferred to your bank account) on the next business day. Simply, the trade date (T) plus one business day (+1) after the trade is executed.

But not anymore. The T+0 Settlement Initiative in India has been introduced same day settlement for a selected list of stocks. This initiative can potentially lead to efficiency and transparency in the trading market. Most importantly, it can improve the liquidity process in the stock market.

What is the T+0 Settlement Cycle?

T+0 Settlement Cycle means that now the day on which the trade is executed is the same day (so T is the day of trade plus 0 is the day of settlement) that money is transferred to your bank account by your broker or broking app. That is why it is also known as the same day settlement cycle. Thus, traders can use their funds more effectively since this cycle is based on quicker transfer of securities and real-time fund transfers.

This settlement cycle is scheduled to launch for a select list of 25 listed companies on 28th March 2024. Note that this launch is a beta test by the Securities and Exchange Board India (SEBI) to understand how such a change would affect the stock market. Some of the companies that are rolled out for this beta test include Ambuja Cements, Bajaj Auto, Cipla, HDFC Bank, Indian Hotels Company, LIC Housing Finance, MRF Tyres, Nestle India, State Bank of India (SBI) and others. Since, this is a test run, trades for T+0 stocks will only take place from 9:15 AM to 1:30 PM.

What would be the Benefits of a T+0 Cycle?

This settlement launch has the potential to change the trading of securities market. The introduction of same day settlement can not only streamline the trading mechanism but also reduce the settlement risk that arises due to liquidity issues.

The new initiative also portrays the picture of the Indian stock market in a much more clearer in terms of liquidity and settlement. Hence, it shows a commitment from both the listed companies and brokers to their investors and traders.


The implementation of this settlement cycle can pave the way to more effective stock market mechanism. Not only can this fasten the liquidity process, it could also disrupt the securities market in a good way. And help investors and traders manage their risks more economically.

R. Kalyanaraman
by R. Kalyanaraman

Chief Executive Officer

I am a sales guy at heart with utmost willingness to listen to people – customers, employees, competitors et al. Nothing gets me a bigger adrenaline rush than an interesting conversation with my customer!