NSE defers T+0 settlement cycle, announces live trading from disaster recovery site

The National Stock Exchange of India ( NSE ) has postponed the implementation of the T+0 rolling settlement cycle in the capital market segment until further notice. The exchange, in its latest communication, confirmed that a revised date for the T+0 settlement cycle will be announced through a separate circular at a future time.

Introduced in March 2024, the T+0 settlement mechanism was designed to operate alongside the standard T+1 system, where trades are typically settled the following day. The T+0 cycle allows for faster capital release, giving investors more immediate control over their securities, while also enhancing risk management through the exchange’s clearing corporations.

India’s capital market settlement processes have undergone significant transformation over the years. Initially, a T+5 settlement cycle was in place, which transitioned to T+3 in 2002 and T+2 in 2003. The phased introduction of the T+1 settlement cycle began in 2021 and was fully implemented by January 2023.

The T+0 settlement cycle is available to investors who can meet the necessary timelines and processing requirements established by the exchanges and clearing corporations. The designated cut-off pay-in time for T+0 transactions, as set by the clearing corporation, is 3:30 PM.

Alongside this deferment, NSE has announced mock trading sessions from its disaster recovery (DR) site for both the capital market and futures and options (F&O) segments. These sessions will be conducted on September 28, 2024, with live trading from the DR site scheduled for September 30 and October 1, 2024.

NSE has issued a notice to its members, stating, “Exchange Contingency Tests will be conducted between 12:00 PM and 1:00 PM during the mock trading session on Saturday, September 28, 2024. Members are advised to plan their activities accordingly.”