T+0 Settlement cycle? REAL-TIME settlement of trades
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T+5 days to T + 0 impact in trading
In the last video, we talked about liquidity, and you guys loved it!
Talking about liquidity, while the stock market allows us to invest in one of the most liquid assets, before 2002 it used to take 5 days to get the money in your bank account after selling the shares.
Things have changed, and now SEBI wants the settlements to happen in real time, i.e. T+0 settlement. For context, most Western countries currently settle trades on T + 2 days.
This move looks at improving efficiency, profitability & transparency while reducing the fraud risks. This is expected to happen somewhere around March 2024
What do you think of this move? Let us know in the comments and follow tickertape for more investing & trading content.