T+1 transition's final leg litmus test for foreign investors' heavyweights

Industry experts are of the opinion that the success of the T+1 settlement cycle will hinge on institutional traders -both foreign as well as domestic

The transition to a shorter T+1 settlement cycle will enter its final and most crucial leg next week. The remaining 200-odd stocks — representing large-caps and high-volume scrips — will be settled on a next-day basis, beginning January 27.

Experts say although the transition has remained smooth, the final leg will be the real litmus test as these stocks have a bulk of foreign portfolio investor (FPI) investments.

Right from the start, FPIs have been opposing the shift from T+2 to T+1 settlement, citing operational difficulties.

Industry experts believe that the success of the T+1 settlement cycle