What extending T+0 settlement to 500 stocks may mean for market liquidity

According to the Sebi circular, the T+0 cycle will be available on an optional basis for the top 500 companies by market capitalisation from January 31, 2025

The Indian stock market is not only among the largest globally by market capitalisation but is also seen as one of the most efficient. To further improve market efficiency, the Securities and Exchange Board of India (Sebi) earlier this year introduced the beta version for T+0 (same-day) settlement on an optional basis for 25 scrips in the equity cash market. Based on the feedback and experience over the past several months, the regulator has now decided to extend the facility to the top 500 stocks. This shows, in Sebi’s view, that the market infrastructure and the institutions involved are prepared