HomeBusinessSEBI Chief Says Shortened Trade Cycle To Benefit Investors

SEBI Chief Says Shortened Trade Cycle To Benefit Investors

SEBI Chief Says Shortened Trade Cycle To Benefit Investors

SEBI chairman Ajay Tyagi has mentioned that shortened commerce cycle will assist traders

Securities and Exchange Board of India (SEBI) chairman Ajay Tyagi on Thursday mentioned that the quickly to be carried out shortened commerce settlement cycle will profit all market individuals. He added that it’ll not result in any liquidity fragmentation.

Speaking at an occasion organised by the trade physique Confederation of Indian Industry (CII), Mr Tyagi mentioned that T+1 (Trade plus sooner or later) cycle will in the end profit all traders. The new regime will come into impact  from January 1, 2022.

Under the T+1 cycle, all commerce associated settlements are to be cleared inside a day of the transaction having taken place. As of now, all trades performed on inventory exchanges are settled inside two days after the completion of the transactions.

“Early settlement will be good for all market participants. It is in the interest of everyone and the new system will not lead to fragmentation of liquidity,” Mr Tyagi mentioned.

The SEBI chief’s feedback have come within the backdrop of the brokers’ affiliation expressing their concern over the implementation of the shortened commerce settlement cycle.

Earlier this month, SEBI had allowed exchanges to maneuver to the T+1 settlement cycle on an non-obligatory foundation.

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