What Is the T+0 Settlement Cycle? SEBI's Rules
The T+0 settlement cycle is an optional same-day settlement route in the Indian equity cash market. A trade executed in the T+0 session is settled that day rather than the next working day. SEBI launched it as a beta for 25 scrips in March 2024 and then widened it to the top 500 companies by market capitalisation. It sits alongside the T+1 cycle rather than replacing it, and neither the investor nor the broker is required to use it.
Definition
The T+0 settlement cycle
is an optional same-day rolling settlement route in India's equity cash market, running in parallel with the existing T+1 cycle. Trades in the T+0 session settle on the trade date itself. SEBI introduced it for a beta set of 25 scrips and extended it to the top 500 companies by market capitalisation. Source: SEBI circular SEBI/HO/MRD/POD-3/P/CIR/2024/172 dated 10 December 2024.
How does the T+0 settlement cycle work in practice?
The T+0 settlement cycle is a separate segment with its own session, its own price band and its own settlement, running in parallel with the regular market. SEBI's framework sets the operating parameters.
| Parameter | T+0 rule |
|---|---|
| Trading session | One continuous session, 09:15 to 13:30 |
| Price band | Plus or minus 100 basis points from the price in the regular T+1 market |
| Band recalibration | After every 50 basis point move in the underlying T+1 market |
| Netting | No netting of pay-in and pay-out obligations between T+1 and T+0 |
| Index and close price | T+0 prices excluded from index and settlement price computation |
| Surveillance | The measures applicable in T+1 apply to T+0 scrips |
Two of those rows matter more than the rest. The price band is tethered to the regular market rather than to the previous close, so the T+0 price cannot drift away from where the stock is actually trading. And because obligations are not netted across the two cycles, a position bought in T+0 and sold in T+1 produces two separate settlements.
On BSE the T+0 version of a scrip carries a # suffix on the symbol and settlement type 0, so
it is distinguishable in the security master from the T+1 line. There is no pre-open session, no
periodic call auction and no post-closing session for these securities.
09:15 to 13:30
The single continuous trading session for the optional T+0 settlement cycle, against a full-length session for T+1
Source: SEBI Master Circular for Stock Exchanges and Clearing Corporations, Chapter 3: Settlement
How the scope widened from 25 scrips to 500
The beta version, introduced by SEBI circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/20 dated 21 March 2024, was deliberately small: 25 scrips and a limited number of brokers, with the market infrastructure institutions reporting fortnightly on how it was going.
The December 2024 circular widened it. SEBI's board approved raising the eligible set from 25 to the top 500 companies by market capitalisation, phased in from the bottom 100 of that group and adding the next 100 every month. The same decision opened access to all registered stock brokers, allowed differential brokerage for T+0, and added the 08:45 to 09:00 block deal window under the T+0 cycle. SEBI also recorded that the earlier idea of moving on to optional instantaneous settlement is not under consideration for now.
Custodial participants came later. From 10 February 2025, orders carrying a custodial participant
code became eligible in T+0, while INST orders are rejected outright at the trading terminal.
Block deals in T+0 securities were enabled from 2 May 2025 on BSE.
What T+0 changes, and what it does not
It changes when money and shares move. It does not change what a company has to disclose or when. A shorter settlement cycle does not accelerate a shareholding pattern, which is quarterly, or a bulk or block deal disclosure, which the exchanges publish after market hours on the trade date.
It also does not change surveillance. A stock in trade for trade settlement or under GSM or ASM carries those measures into T+0 too, because SEBI applies the T+1 surveillance framework to T+0 scrips.
The T+0 settlement cycle is a plumbing change with a narrow, well-defined footprint: an optional same-day session for a defined list of scrips, priced off the regular market and excluded from the index. Flock reports the filings and disclosures that describe ownership, each one dated and linked back to its source. What any of it means for your own position is your call to make. Not investment advice.
Frequently asked questions
Is the T+0 settlement cycle compulsory in India?
No. SEBI introduced it on an optional basis alongside the existing T+1 cycle, and SEBI's board decision states that optional T+0 settlement in the equity cash market will continue to co-exist with the extant T+1 cycle. All registered stock brokers may offer it, and they may charge differential brokerage for it. Source: SEBI board memorandum on enhancement of scope of optional T+0 settlement cycle, December 2024.
Which stocks are eligible for T+0 settlement?
The top 500 companies by market capitalisation. SEBI's board approved increasing the eligible set from the original 25 beta scrips to the top 500 in a phased manner, starting with the bottom 100 of that group and adding the next 100 each month. Source: SEBI circular SEBI/HO/MRD/POD-3/P/CIR/2024/172 dated 10 December 2024.
What are the T+0 trading hours?
One continuous session from 09:15 to 13:30, shorter than the regular T+1 session. There is no pre-open, no periodic call auction and no post-closing session for T+0 securities. A separate block deal window runs from 08:45 to 09:00. Source: SEBI Master Circular for Stock Exchanges and Clearing Corporations, Chapter 3, and BSE FAQs on trading of T+0 securities.
Do T+0 prices affect the index or the closing price?
No. SEBI specifies that T+0 prices are not considered in index calculation or settlement price computation, and there is no separate close price for securities based on T+0 trading. BSE applies the corresponding T+1 security's closing price to the T+0 security at end of day. Source: SEBI Master Circular for Stock Exchanges and Clearing Corporations, Chapter 3.
Flock tracks these filings, sourced, dated, and linked back to the original. See what smart-money entities disclosed, without the guesswork about what it means.
Disclosures shown are public regulatory filings. Data may be delayed or incomplete. Smart-money entities may no longer hold positions shown. Not investment advice.