Date: 2025-04-29Category: Not ApplicableState: Union GovernmentCountry: India
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)
**Summary:**
This circular, issued by the Securities and Exchange Board of India (SEBI) on April 29, 2025, extends the implementation timeline for provisions outlined in SEBI Circular No. SEBI/HO/MRD/MRDPoD-3/P/CIR/2024/172, dated December 10, 2024, regarding the optional T0 settlement cycle for Qualified Stock Brokers (QSBs).
Specifically, the deadline for QSBs to establish the necessary systems and processes for seamless investor participation in the optional T0 settlement cycle is extended from May 1, 2025, to November 1, 2025. This extension is a result of feedback from QSBs and subsequent discussions with Stock Exchanges, Clearing Corporations, and Depositories, aimed at ensuring a smoother implementation process.
All other provisions of the SEBI Circular dated December 10, 2024, remain unchanged. Market Infrastructure Institutions (MIIs) are directed to take necessary steps for implementation, amend relevant byelaws, rules, and regulations as required, and disseminate the circular's provisions to market participants and investors, including posting on their websites.
This circular is issued under the authority granted by Section 11(1) of the Securities and Exchange Board of India Act, 1992, 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 the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018. The circular is intended to protect investor interests, promote the development of the securities market, and regulate the securities market.
The circular is available on the SEBI website at www.sebi.gov.in under the "Legal Framework > Circulars" section.
For further information, contact Hruda Ranjan Sahoo, Deputy General Manager, Market Regulation Department, at 022-26449586 or via email at hrsahoo@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body issuing the circular and responsible for regulating the securities market in India.
SEBI Circular dated December 10, 2024: A prior circular issued by SEBI regarding the optional T0 settlement cycle, which is being amended by this current circular.
Qualified Stock Brokers (QSBs): Stock brokers who meet specific criteria and are eligible to participate in the optional T0 settlement cycle.
T0 settlement cycle: An optional settlement cycle where trades are settled on the same day.
T1 settlement cycle: The existing settlement cycle where trades are settled one day after the trade date.
Stock Exchanges: Recognized Stock Exchanges that are addressees of the circular and need to implement the provisions.
Clearing Corporations: Recognized Clearing Corporations that are addressees of the circular and need to implement the provisions.
Depositories: All Depositories that are addressees of the circular and need to implement the provisions.
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.”
Page 1 of 23. 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
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