T+1 settlement cycle will be implemented in a phased manner, according to the roadmap finalized by Market Infrastructure Institutions ‘MIIs’ (stock exchanges, clearing corporations, and depositories). The first list of securities with a T+1 settlement cycle will begin from the trade date starting on February 25, 2022.
On September 7, 2021, the Securities and Exchange Board of India authorised stock exchanges to implement a T+1 settlement cycle from January 1, 2022, on equity securities.
All listed stocks on the three stock exchanges (BSE, NSE, and MSEI) will be ranked in descending order based on daily market capitalization averaged for the month of October 2021. When a stock is listed on more than one exchange, the market capitalization is calculated based on the price of the stock at the stock exchange with the highest trading volume during the aforementioned period.
Based on the ranking, the bottom 100 stocks will be available for the implementation of the T+1 settlement beginning on February 25, 2022. Following that, beginning in March 2022, on the last Friday (trade day) of each month, the next bottom 500 stocks will be available for introduction to the T+1 settlement. Other guidelines are available on the websites of the respective exchanges.
