MUMBAI – In line with the directions by the Securities and Exchange Board of India (Sebi), stock exchanges will introduce the same-day or T+0 trade settlement for a limited set of securities from March 28. The beta version of T+0 settlement will be introduced for a limited set of 25 scrips and with a limited number of brokers. Exchanges will be sharing the list of scrips and the brokers at a later date. But let’s try and understand the concept and how is it different from the current T+1 trade cycle. Trade settlement is the process of transferring securities and funds between buyers and sellers after a trade is executed. The shorter the settlement cycle, the faster investors can access the securities and funds. Currently, the Indian stock market operates on a T+1 settlement cycle for all scrips. For example, if an investor buys shares on Monday, he/she will receive them in their demat accounts on Tuesday. Similarly, if the shares are sold on Monday, they will receive the money in their bank accounts on Tuesday.However, stock exchanges will introduce the T+0 settlement cycle, which will work along with T+1. Under T+0, trades will be settled on the same day. NSE Clearing will incorporate the settlement calendar of T+0 in the monthly settlement calendar circular. The settlement calendar for T+0 will be part of the STC report downloaded to members. The settlement calendar for T+0 will be available on respective depositories also.Pay-in for T+0 sell obligations will be allowed only by way of early pay-in using, the block mechanism. The pay-in for T+0 has to be provided only in the from of early pay-in, using the block mechanism. The cut-off for EPI of security at depositories shall be 1:45 pm on T-day. This includes EPI for UPI as well as non-UPI clients.Obligation for T+0 will not be considered for netting with F&O physical obligation on expiry days.The obligation for T+0 settlement will not be netted with that for T+1 settlement.The margin applicable for securities in the T+1 market will be applicable for the T+0 market as well. Auto do facility will not be applicable for T+0 as all the pay-in has to be done in the form of EPI. Members shall have the facility to provide a request for client direct pay-out for T+0 settlement.The auction will not be conducted in case of security shortages. Security shortages shall be directly closed out at 10% above the highest price of the day across all exchanges for the T+0 market.Action on shortages will continue as per the existing rules for the cash market.The preferred depository facility is available for T+0 settlement, similar to settlement in T+1 cycle.Will the margin rates for securities in T+0 differ from that applicable in T+1?No, it will be the same.