T+1 settlement not aligned to global standards, Asifma tells Sebi

Says since working hours in Europe and US are not aligned with APAC markets, current T+2 market cycle is already effectively a T+1 settlement cycle

Asia Securities Industry and Financial Markets Association (Asifma) has shot off another letter to the Securities and Exchange Board of India (Sebi), highlighting the operational difficulties for overseas investors if the settlement cycle is halved to T+1.

The industry body has reiterated that securities settlement for foreign portfolio investors (FPIs) is operationally complex, requiring a high degree or coordination between market participants across different time zones. It said that since working hours in Europe and US were not aligned with those in APAC markets, the current T+2 market cycle was already effectively a T+1 settlement cycle.

“US or European custodians