In order to remain competitive against the surging popularity of cryptocurrency exchanges, India is preparing to introduce a faster trade settlement process for its stock market.
The Chair of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, announced on March 11 that the T+0 trade settlement cycle will be implemented by March 28.
This new service will be optional for traders and will allow for same-day settlement. Previously, the Indian stock market used a T+1 settlement cycle, which meant that all trades were settled the day after they were made.
The introduction of T+0 settlement is part of a phased approach to modernizing the market. According to Buch, this move is crucial for the Indian stock market to remain competitive against cryptocurrencies.
She believes that investors now expect instantaneous settlements, and if the stock market cannot offer this feature, they may turn to the fast-paced world of crypto trading.
