Introduction of T+1 Rolling Settlement Cycle by Stock Exchanges

In April 2002, the Indian capital markets introduced the T+3 rolling settlement cycle. The settlement cycle of T+3 under the Rolling Settlement System was shortened further to T+2 rolling settlement, w.e.f. April 01, 2003. With the objectives of mitigating risk, enhancing liquidity and increasing the efficiency of the settlement process, flexibility has been provided to recognized stock exchanges (“SEs”) to offer either T+1 or T+2 settlement cycle, w.e.f. January 01, 2022. This move positioned India as one of the earliest adopters of the T+1 settlement cycle. Accordingly, the T+1 was introduced by the stock exchanges on February 25, 2022 for limited set of stocks, while complete transition took place on January 27, 2023.