Key Points
The shift to same-day trade settlement or T+0 cycle could be a potential game changer for India, but a clear guidance is critical that can help participants make informed decisions in an evolving market landscape, says Trivesh D, chief operating officer at online stock trading platform Tradejini...
Stock exchanges are set to launch T+0 trade settlement in a limited number of scrips in the cash market, involving a limited number of brokers, from Thursday, and this will function alongside the existing T+1 cycle...
However, Trivesh believes that unless participation is made mandatory, the impact will be miniscule...
Given the already declining cash market volumes compared to F&O, implementing this change could potentially skew the ratio of F&O volumes to cash market trades even further, he said in an interview with ETMarkets...
He also highlighted that the current ecosystem might require improvements for T+0 functionality, such as margin reporting standardization, risk management strategies, settlement guidelines, and price differential arbitrage protection..
