On October 10, 2024, the Securities and Exchange Board of India (SEBI) issued a circular announcing a change in the payment schedule for securities under the T+1 rolling settlement system. Following an earlier mandate dated June 5, 2024, requiring clearing companies to credit securities directly to customers’ demat accounts, the payment schedule has been revised from 1:30 p.m. to 3:30 p.m. This adjustment allows securities to be credited to clients’ accounts on the same settlement day, thereby improving the efficiency of the process. The circular also states that exchanges, clearing companies and depositories must amend relevant regulations to implement this change and inform market participants accordingly. SEBI implemented this decision to protect the interests of investors and improve the regulatory framework of the securities market. The circular can be accessed on the SEBI website for further details.

Securities and Exchange Board of India

Circular no. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/137 | Date: October 10, 2024

HAS
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Dear Sir/Madam,

Under: Modification of the distribution timing of titles in the Activity Calendar to T+1 Rolling regulations.

1. SEBI Circular, reference number SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 5, 2024, required payment for securities to be credited directly to the customer account by the companies compensation. (CC).

2. As prescribed in the aforesaid Circular, under Phase -1, securities payable in the equity segment in cash (including cleared cash and F&O physical settlement) will be credited directly to the demat account of the client concerned by Clearing.

3. As a result of the above, the payment timing for securities will be revised from 1:30 p.m. to 3:30 p.m. Thus, following the Direct Payout, the securities will be credited to the demat account of the clients on the same settlement day instead of one working day from the receipt of the Clearing payment.

4. The existing activity schedule for T+1 rolling settlement, under paragraph 1.4 of Chapter 3 of the SEBI Master Circular on Stock Exchanges and Clearing Companies dated October 16, 2023, is also revised in respect of concerns the payment schedule for securities.

5. Exchanges, clearing houses and depositories are therefore advised to:

A. Make necessary amendments to relevant statutes, rules and regulations for the implementation of the above decision, if necessary/applicable.

b. Bring the provisions of this circular to the attention of Market Players and disseminate them on their

6. This circular is issued in exercise of the powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992 read with section 10 of the Act, 1956 on Securities Contracts (Regulation) and Article 19 of the Depositories Act. Act 1996 to Protect the Interests of Investors in Securities, Promote Development and Regulate the Securities Market.

7. This circular is available on the SEBI website at sebi.gov.in under “Legal → Circulars”.

Yours faithfully,

Vishal Shukla
General manager
Such. No. 022-2644-9959
Email: (email protected)