Extension of Timeline for Optional T+0 Settlement Cycle Implementation for Qualified Stock Brokers

CIRCULAR
SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/58 April 29, 2025 All Recognized Stock Exchanges All Recognized Clearing Corporations All Depositories All Registered Stock Brokers All Custodians Sir/Madam, Subject: Extension of timeline for implementation of provisions of SEBI Circular dated December 10, 2024, on optional T+0 settlement cycle for Qualified Stock Brokers (QSBs)

1. SEBI vide Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/172 dated December 10,
   2024, enhanced the scope of optional T+0 rolling settlement cycle in addition to the existing T+1 settlement cycle in Equity Cash Markets.

2. As per paragraphs 3.3.1 and 6.2 of the aforesaid circular:
   “3.3.1. Stock brokers who are designated as QSBs and meet the parameter of minimum number of active clients for qualification as QSB as on December 31, 2024 shall put in place necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle. …
   6.2. The provision at paragraphs 3.3, 3.4 and 3.5 above shall be applicable with effect
   from May 01, 2025.”

3. Based on the feedback received from QSBs; subsequent discussions with Stock
   Exchanges, Clearing Corporations, Depositories and QSBs; and in order to ensure smooth implementation of the same, it has been decided to extend the timeline for QSBs for putting in place the necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle, to November 01, 2025.

4. All other provisions of SEBI Circular dated December 10, 2024 shall remain unchanged.

5. All MIIs are advised to:
   i. take necessary steps and put in place necessary systems for implementation of the
   above.
   ii. make necessary amendments to the relevant byelaws, rules and regulations,
   wherever required, for the implementation of the above; and.
   iii. bring the provisions of this circular to the notice of the market participants (including
   investors) and disseminate the same on their website.

6. 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 and section 26(3) of the Depositories Act, 1996 read with 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.

7. 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
   Tel no.: 022-26449586
   Email: hrsahoo@sebi.gov.in