Central Depository Services (India) Limited

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COMMUNIQUÉ TO DEPOSITORY PARTICIPANTS

CDSL/OPS/DP/SETT/2024/164 March 21, 2024

OPERATIONAL GUIDELINES FOR ROLLING NORMAL (T+0) SETTLEMENT

DPs are requested to take note of SEBI Circular no. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20

dated March 21, 2024, regarding the implementation of T+0 settlement cycle [refer Annexure].
CDSL is pleased to inform its readiness and advise DPs to take note of the following implementation
guidelines related to T+0 settlement cycle.

A. Creation of New Market Type:

CDSL is in receipt of a request from Indian Clearing Corporation Limited (ICCL-CCID -10) and NSE
Clearing Limited (NCL-CCID -11) for creation of New Market Type for settlement of securities
traded under T+0 Market Type in Capital Market Segment of the Stock Exchanges.

Accordingly, the following Market Type has been created in CDSL system to process settlement
transactions pertaining to T+0 settlements. DPs / CMs / TMs and their trading clients are advised
to note the cutoff time for Early Pay-in (EP) transactions to be executed through WebCDAS and/or
Easiest.

Cutoff time to execute

Clearing
Sr. Exchange Market Market Type Early Pay-in
Corporation
No. ID Type Description Transactions
(CC) ID
Easiest WebCDAS
1. 11 (BSE) 10 (ICCL) 33 Rolling Normal (T+0) 01:45 pm 01:45 pm
2. 12 (NSE) 11 (NCL) 33 Rolling Normal (T+0) 01:45 pm 01:45 pm

B. Operational Modalities:

1) T+0 settlement cycle is an optional facility where clients can opt to execute trades under New
Market Type T+0 for the securities (ISINs) which are in the approved list of the stock
exchanges.
2) DPs / CMs / TMs and their trading clients can execute pay-in transactions of T+0 settlements
ONLY in the form of Early Pay-in (EP). Execution of EP transactions can be Intra-depository
(i.e. within CDSL) OR Inter-depository (i.e. CDSL to NSDL).

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KEYWORD : Market Type
 Central Depository Services (India) Limited
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3) UCC details will be mandatory for execution of EP transactions. The existing process of
Block Mechanism will be applicable wherein the ISIN balance will be immediately blocked /
earmarked in favour of CC in the demat account of the client.
4) Execution of pay-in transactions other than EP transactions i.e. Normal Pay-in and On-Market
transactions will not be permitted for T+0 settlements.
5) Execution of EP transactions for the settlements with market type T+0 will be permitted till EP
cutoff time which is 01:45 pm on T Day beyond which execution of EP transactions for same
business day will not be permitted.
6) As per the details of the settlement schedule received from Clearing Corporations (CCs), the
pay-in for settlements with market type T+0 is scheduled at 03:30 pm.
7) DPs / CMs / TMs and their trading clients are advised to note that execution of Inter-depository
EP transactions entered during the permitted timelines are subject to availability of sufficient
balance in the demat account.
8) Unmatched or excess quantity of EP transactions, blocked in the client account will be released
based on the upload of reversal file by CC to make the said blocked / earmarked balance free.
9) All the EP transactions executed till 1:45 pm on T Day will be reported to CCs at the predefined
time intervals. The matching of reported EP transactions with the trade obligation details will
be performed by the CCs.
10) As a part of pay-in processing, the blocked / earmarked securities will be debited from the
demat account of the client and will be credited to the corresponding EP account of a Clearing
Member and would further be reported as a pay-in as per the existing settlement mechanism.
11) TM Pool / CM Pool Account will reflect the hop-skip entries for EP intra-depository (within
CDSL) transactions. The said hop-skip entries will be reflected in DP57 and DPC9 reports.
12) Further, DPs may advise their CM / TM / trading clients to refer FAQs on T+0 settlement cycle
disseminated on CDSL website at https://www.cdslindia.com/Investors/FAQs.html.
13) The aforesaid T+0 settlement functionality is scheduled for release on March 27, 2024, EOD, to
make it effective from March 28, 2024.

DPs are requested to note the content of the communique, disseminate the same to their CM / TM /
trading clients and initiate suitable back-office related changes, if any.

Queries regarding this communiqué may be addressed to:

CDSL – Helpdesk Emails may be sent to: [email protected] and telephone number 022-
62343333.

sd/-
Shelton Joseph
Asst. Vice President – Operations

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KEYWORD : Market Type
 CIRCULAR

SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 March 21, 2024

All Recognized Stock Exchanges

All Recognized Clearing Corporations
All Depositories

Dear Sir/ Madam

Subject: Introduction of Beta version of T+0 rolling settlement cycle on optional

basis in addition to the existing T+1 settlement cycle in Equity Cash Markets

1. SEBI vide Circular No. SEBI/HO/MRD2/DCAP/P/CIR/2021/628 dated September 07,

2021 allowed for introduction of T+1 rolling settlement cycle. All stock exchanges,
clearing corporations and depositories (collectively referred to as “Market
Infrastructure Institutions (MIIs)”) jointly decided to shift to T+1 settlement cycle in a
phased manner, which was fully implemented w.e.f. January 27, 2023.

2. The significant evolution of technology, architecture and capacity of MIIs, presents

opportunities for further advancing clearing and settlement timelines. Further, India’s
depository ecosystem has visibility of individual client level holdings in digital form,
and so has the ability to effect immediate transfer of securities and also India’s
payments and settlements ecosystem has long allowed for real time transfer of funds.

3. A shortened settlement cycle will bring cost and time efficiency, transparency in
charges to investors and strengthen risk management at clearing corporations and
the overall securities market ecosystem.

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4. Accordingly, based on the recommendations of Working Group consisting of MIIs,
public comments, and recommendations of Risk Management Review Committee of
SEBI, a proposal on introduction of optional T+0 settlement and subsequent optional
Instant Settlement, in addition to the existing T+1 settlement cycle was placed before
SEBI Board for approval.

5. Pursuant to deliberations and approval of the Board, it has been decided to put in
place a framework for introduction of the Beta version of T+0 settlement cycle on
optional basis in addition to the existing T+1 settlement cycle in equity cash market,
for a limited set of 25 scrips and with a limited number of brokers.

6. The operational guidelines in this regard are as under:

a. Eligible Investors: All investors are eligible to participate in the segment for T+0
settlement cycle, if they are able to meet the timelines, process and risk
requirements as prescribed by the MIIs.

b. Surveillance Measures: The surveillance measures as applicable in T+1

settlement cycle shall be applicable to scrips in T+0 settlement cycle.

c. Trade Timings: One continuous trading session from 09:15 AM to 1:30 PM.

d. Price Band: The price in the T+0 segment will operate with a price band of +100
basis points from the price in the regular T+1 market. This band will be re-calibrated
after every 50 basis points movement in the underlying T+1 market.

e. Index calculation and settlement price computation: T+0 prices will not be
considered in index calculation and settlement price computation. There shall be
no separate close price for securities based on trading in T+0 segment.

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 f. Netting of Obligations: There shall be no netting in pay-in and pay-out obligations
between T+1 and T+0 settlement cycle.

7. To ensure smooth implementation, the MIIs shall publish other operational guidelines
(including mechanism for trading, clearing and settlement, risk management, etc.) and
Frequently Asked Questions (FAQs) along with the list of 25 scrips for the Beta version
of T+0 settlement cycle and disseminate the same on their respective websites.

8. On periodic basis, MIIs shall disseminate the list of brokers that are participating in the
Beta version of T+0 settlement cycle on their websites.

9. MIIs shall provide a fortnightly report on the progress of activities in the Beta version
of T+0 settlement cycle till further direction.

10. The provisions of this circular shall come into force with effect from March 28, 2024.

11. SEBI shall continue to do further stakeholder consultation including with users of the
Beta version of T+0 settlement cycle.

12. All MIIs are advised to:

a. take necessary steps and put in place necessary systems for implementation of
the above;
b. make necessary amendments to the relevant bye-laws, rules and regulations,
wherever required, for the implementation of the above; and
c. bring the provisions of this circular to the notice of market participants (including
investors) and also to disseminate the same on their websites;

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13. This circular is issued in exercise of the powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act 1992, read with Regulation 51 of the
Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations)
Regulations, 2018, Section 26(3) of the Depositories Act, 1996 and Regulation 97 of
Securities and Exchange Board of India (Depositories and Participants) Regulations,
2018 to protect the interests of investors in securities and to promote the development
of, and to regulate the securities market.

14. This circular is available on SEBI website at www.sebi.gov.in at “Legal Framework -

Circulars”.
Yours faithfully,

Hruda Ranjan Sahoo

Deputy General Manager
Market Regulation Department
E-mail: [email protected]

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