Same Day Settlement System: SEBI has also decided to simplify the rules of Alternative Investment Funds (AIFs). A relief decision has been taken for foreign investors (FPIs) in the SEBI board meeting.
Share Market New Rule: Share market regulator SEBI is soon going to start a new pilot project in the stock market. This system has been named T+0, that is, under this the calculation of buying and selling of shares will be done in a single day. Under the new system, initially there will be a trial on 25 shares with some selected brokers. Currently, the calculation of buying and selling of shares happens after a day. After launching the new system as a pilot project, SEBI will review it after three and six months. Currently T+1 system is implemented in the Indian stock market.
Relief decision for foreign investors
It was told by SEBI that some special rules are being made especially to deal with those rumors which impact the share price of the company. SEBI has also decided to simplify the rules of Alternative Investment Funds (AIFs). A relief decision has been taken for foreign investors (FPIs) in the SEBI board meeting. Now if a foreign investor has more than 50% investment in a single company or group and that company is listed in the stock market and does not have a specific promoter, then in such a situation SEBI is removing the rule of asking for some additional information from those investors. Is. This exemption will be available with some conditions.
You will get 180 days time instead of 30 days.
Now if any foreign fund has to give any important information about its investment, then it will now get 30 days time instead of 7 days. Apart from this, if a foreign fund wants to cancel the registration in India, then it can sell its entire investment in 180 days instead of 30 days. If he is not able to sell the entire investment even within 180 days (six months), he will be given another 180 days. But this additional time will be given on the condition that he will deposit 5% of the sale as penalty in SEBI’s Investment Protection and Education Fund (IPEF).
No need to deposit 1% security deposit
The process of issuing shares for companies has been made easier by the SEBI Board. Now companies will not need to deposit 1% security deposit for public and rights issues. Apart from this, the definition of promoter group has been changed. Earlier, only those companies which had 5% or more stake after IPO were included in the promoter group. But now even non-promoter companies which get 5% or more stake after IPO will also be considered part of the promoter group.
What is T+0 settlement?
T+0 settlement simply means that the transaction of buying or selling your shares is completed on the same day. That means there is no delay of any kind in this system. You will be paid on the day you buy the shares and the shares will be transferred to your demat account on the same day. Similarly, you will get payment on the same day you sell the shares. Now SEBI is preparing to implement it from March 28. SEBI Chairman Madhabi Puri Buch has given information about this yesterday itself. There will also be this option, you can select either T+0 or T+1 option for settlement.
What is T+1 settlement system
If a trader made a transaction to buy or sell shares on Monday (trade date). In such a situation, payment and ownership rights of shares will be received on Tuesday in T+1 settlement system. But in markets where T+2 settlement system is applicable, the payment and change of ownership of shares will take place on Wednesday (after two working days). Let us tell you that the T+1 system was implemented on January 27, 2023. Earlier there was T+2 settlement in India also. Before the launch of the National Stock Exchange (NSE) in 1994, the settlement process in BSE used to happen once in two weeks.
