Important to implement T+1 settlement cycle to protect interest of investors: SEBI chief
Besides this, the capital markets regulator has taken several regulatory measures to protect investors in the recent past, he said during an event at the India International Trade Fair.
Tyagi said these measures include protection of customers through an upfront margin framework, risk-o-meter, e-KYC and pledge-acceptance mechanism.
“The decision to implement T+1 (one day after trading day) settlement in a phased manner from February 2022 will prove to be extremely important to protect the interest of investors,” he said.
T+1 means that the settlement relating to market trading has to be approved within one day of the actual transaction taking place. At present, trading on the Indian stock exchanges is settled within two working days (T+2) of the transaction.
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