(Reuters) -India’s markets regulator will extend by six months a deadline for certain stock brokers to offer an optional same-day settlement cycle, it said on Tuesday, after receiving feedback from multiple stakeholders.
The Securities and Exchange Board of India (SEBI) had initially asked the brokers to offer a same-day or T+0 settlement cycle by May 1 but has extended the target to November 1.
SEBI said its decision came after feedback received from the brokers, subsequent discussions with stock exchanges, clearing corporations, depositories and brokers who needed more time to set up the required systems and enable “seamless participation of investors.”
Under the new chair, Tuhin Kanta Pandey, SEBI has signalled a more pragmatic approach to oversight and also relaxed certain regulations.
The financial regulator introduced the same-day settlement cycle in March last year for 25 stocks, before expanding it to 500 listed companies in December.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Eileen Soreng)
