SEBI, which is like a boss for the stock market, has a new idea called T+0. It means you can buy and sell shares all on the same day.
They’re testing it out first with 25 shares and some chosen brokers. Usually, it takes a day to buy and sell shares, but this might change.
For People Outside India
SEBI is making some special rules to handle gossip that affects share prices. They’re also making it simpler for some special investment funds.
They decided to be nice to foreign investors (FPIs). If a foreign investor owns more than half of a listed company without a clear owner, SEBI won’t ask too many questions, but there are some conditions.
More Time for Foreigners
Foreign funds will have 180 days instead of 30 to give important information. If they want to leave, they can sell their investment in 180 days instead of 30.
If they can’t sell within 180 days, they get another 180 days but have to pay a 5% penalty.
No More Money Upfront
Companies don’t need to put down a 1% deposit for public and rights issues anymore. Also, the meaning of “promoter group” has changed.
Now, companies with 5% or more stake after an IPO will be part of the promoter group.
What’s T+0 Settlement?
T+0 settlement means buying or selling shares on the same day. SEBI plans to start this on March 28. You can pick either T+0 or T+1 for your deals.
What’s T+1 Settlement?
In T+1 settlement, if you trade on Monday, you get paid and own the shares on Tuesday. Before, India had T+2 settlement before switching to T+1 on January 27, 2023. BSE used to settle every two weeks before NSE launched in 1994.
