Sebi asks exchanges to prepare plan to shift to T+2

Securities and Exchange Board of India (Sebi) has asked stock exchanges to submit plans for providing facilities for shifting to T+2 settlement cycle from current T+3 mode with effect from April 1, 2003.

“It has been decided to further shorten the settlement cycle from the existing T+3 rolling settlement to T+2 from April 1, 2003”, Sebi said in a communication to stock exchanges. In view of shortening of trade cycle, the new activity schedule has been finalised, Sebi said, adding bourses should provide facility for late confirmation of trades by custodians. However, the time limit for late confirmation should be fixed and exchanges should levy an additional charge to discourage such delays, it said.