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)
The Securities and Exchange Board of India (SEBI) has issued a circular on April 29, 2025, announcing an extension to the implementation timeline for the optional T+0 rolling settlement cycle. This extension modifies SEBI’s earlier circular dated December 10, 2024, which had enhanced the scope of the T+0 settlement in addition to the existing T+1 cycle for Equity Cash Markets. The initial circular had mandated that Qualified Stock Brokers (QSBs) meeting the active client criteria as of December 31, 2024, should establish the necessary systems and processes for the T+0 settlement by May 1, 2025.
However, based on feedback received from QSBs and subsequent discussions with stock exchanges, clearing corporations, and depositories, SEBI has decided to extend this deadline to November 1, 2025. This extension aims to ensure a smoother transition and implementation of the T+0 settlement process by the QSBs. SEBI clarifies that all other provisions outlined in the circular dated December 10, 2024, remain unchanged. The circular directs all recognized stock exchanges, clearing corporations, depositories, registered stock brokers, and custodians to take the necessary steps, amend relevant regulations if required, and inform market participants, including investors, about this extension.
Securities and Exchange Board of India
Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2025/58 Dated: 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)
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.”
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.
All other provisions of SEBI Circular dated December 10, 2024 shall remain unchanged.
All MIIs are advised to:
take necessary steps and put in place necessary systems for implementation of the above.
make necessary amendments to the relevant byelaws, rules and regulations, wherever required, for the implementation of the above; and.
bring the provisions of this circular to the notice of the market participants (including investors) and disseminate the same on their website.
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.
This circular is available on SEBI website at www.sebi.gov.inat “Legal Framework – Circulars.”
Yours faithfully,
Hruda Ranjan Sahoo
Deputy General Manager
Market Regulation Department
Tel no.: 022-26449586
Email: hrsahoo@sebi.gov.in
