Foreign investors want Sebi to delay shorter trade settlement plan

Sebi's plan could push foreign investors to upgrade their custodial arrangements, spend more on foreign exchange charges and other costs.

India should put off a plan to shorten settlement of stock transactions as it raises the risk of default by local brokerages and dims the country’s allure to global investors, a lobby group said.
 

Capital market regulator, Securities and Exchange Board of India, has announced a proposal to allow stock exchanges to offer next-day settlement in some stocks starting early next year instead of the two-day or T+2 settlement practiced in most markets including the U.S. 

“To change any operational systems and processes to accommodate T+1, I don’t think it’s possible to do it in three months. We think there