India to move to T+1 settlement from Friday: Here's what experts say

Friday will be a landmark day for the domestic markets with all listed stock entering the so-called T+1 settlement cycle

Friday will be a landmark day for domestic markets, with all the listed stocks entering the professed T+1 (trading plus one day) settlement cycle.

About 200 stocks, which account for more than 80 per cent of India’s market capitalisation, will be settled on a next-day basis, with effect from January 27.

This will evidently complete the transition to the T+1 cycle that started in February 2022 with the bottom 500 stocks in terms of market value.

T refers to the trading day. Currently, the settlement is largely done on a T+2 basis, meaning that securities bought or sold by an