Why Sebi is proposing same-day settlement for stocks

India's regulator, Securities and Exchange Board of India (Sebi), has proposed same-day settlement for stock trades starting in March, with a move towards real-time settlement by 2025. The shorter settlement cycles aim to attract more investors and address the growing global demand for quicker resolution. The worldwide demand for faster settlement has increased following a surge in 'meme stock' prices in 2021 that caused brokers such as Robinhood Markets Inc to face challenges in posting collateral for these trades during the two-day settlement period.

Jan 12, 2024 - 10:30
Why Sebi is proposing same-day settlement for stocks
India's regulator, Securities and Exchange Board of India (Sebi), has proposed same-day settlement for stock trades starting in March, with a move towards real-time settlement by 2025. The shorter settlement cycles aim to attract more investors and address the growing global demand for quicker resolution. The worldwide demand for faster settlement has increased following a surge in 'meme stock' prices in 2021 that caused brokers such as Robinhood Markets Inc to face challenges in posting collateral for these trades during the two-day settlement period.