Stock trades to be settled in one hour from march 2024

New Delhi: Markets regulator SEBI is soon planning to implement the system of trade settlement in one hour. Giving information about this at the Global Fintech Fest 2023, SEBI Chairperson Madhabi Puri Buch said that after trade settlement in one hour, immediate settlement will also be implemented. Advocating the promotion of fintech for sustainable growth, Buch said that now stock exchanges are fintech. We went from T+2 to T+1 and now we are talking about moving towards instant settlement. When asked how long the trade settlement in one hour would be applicable, he did not disclose it. On this occasion, it was also said that if the broker goes down, then its client should have a direct link with the exchange, work is also being done on this mechanism.

According to market sources, it is likely to be implemented after Budget 2024 and the immediate settlement will be implemented a few months after that. T+1 settlement means all settlement related to trades in the stock market should be completed within a day or 24 hours. For example, if you are an investor and have bought 50 shares on Monday, the same should be reflected in your demat account on Tuesday. SEBI has implemented this facility in January 2023.

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SEBI Chief cautioned everyone on miss selling and said that the governance is that think first about how suitable you find the product and service you are offering for the people of your household. In financial services, a system is being prepared to curb miss selling by agents and distributors and work is on to stop it with the help of technology.