T+0 Settlement has been implemented in the Indian stock market today on 28 March 2024. India is the second country in the world after China in which this T+0 has been implemented.
So what is this T+0 Settlement after all and will everyone benefit from this scheme or not?
What is a T+0 Settlement?
T+0 is a revolutionary step taken in the Indian stock market. This means that if you sell any stock today, you will get the money in your demat account today itself.
If you want, you can use that amount to buy any other stock or transfer it to your bank account on the same day.
How did demat accounts work before T+0?
If we talk about 2014, it used to be T+14, which means if you sell the stock today, the money will be transferred to your demat account in 14 days.
Then gradually the Indian stock market managed to implement the T+3 Settlement. T+1 settlement was implemented at the end of 2022.
This meant that if you sell the stock today, you will get the entire amount in your demat account the next day.
What changes will T+0 bring to the Indian stock market?
It is not that after implementing the T+0, only the investors will get the full benefit.
This will also benefit the liquidity of the Indian stock market because if the investor’s money from the sold stock sent to the investor arrives on the same day, then he gets the opportunity to plan his next investment on the same day.
Now when the investor plans his investment quickly, the buying and selling of shares in the Indian stock market will also happen. We will see the benefits of this in the Indian stock market.
Has T+0 Settlement been fully implemented?
Right now T+0 is in beta version, which means that T+0 will not work completely on every share in the Indian stock market.
If you are thinking that whatever share you sell today, T+0 will be applied to it and your money will be transferred to your demat account immediately, then this is not going to happen.
T+0 Settlement has been implemented in only a few stocks and here are these stocks.
- Indian Hotels
- Tata Communications
- Trent Ltd
- Ambuja Cements
- Ashok Leyland
- Bank of Baroda
- Bharat Petroleum Corporation
- Birlasoft
- Coforge
- Divi’s Laboratories
- LIC Housing Finance
- LTIMindtree
- MRF
- Nestle India
- NMDC
- Oil and Natural Gas Corp
- Petronet LNG
- Samvardhana Motherson International
- Union Bank of India
- Vedanta
It will take time to implement T+0 Settlement on all stocks, this period has not been decided yet.
How will the T+0 settlement work?
Suppose you have sold one of your stocks from 9:15 AM to 1:30 PM. If the stock you have sold currently comes in T+0 Settlement, then you will get the money in your demat account on the same day.
But as we have said in the beginning, remember that not every stock comes under T+0 Settlement yet because T+0 has just been launched in the beta version.
Which world record has been created in India with T+0 Settlement?
India has become the second country in the world to implement the T+0 Settlement. The name of the first country is China. T+0 was implemented in China long ago.
See, for some time now we have seen that the Indian stock market is touching new heights. After implementing the T+0 Settlement, it is ready to touch a new height.
Conclusion
If we conclude this article then we get these points.
- T+0 Settlement has been implemented in the Indian stock market in India on 28 March 2024.
- T+0 is currently implemented in the beta version, so it is not yet applicable in every stock.
- India has become the second country in the world in which this System has been implemented.
- Indian investors will get the benefit of T+0 Settlement.
- Indian investors as well as the Indian stock market will benefit from this system.