SEBI Chief Ajay Tyagi said the decision to implement T+1 settlement cycle in a phased manner beginning February 2022 will go a long way in protecting investors' interest.
The announcement came after SEBI permitted stock exchanges to introduce T+1 settlement cycle from January 2022 on any of the securities available in the equity segment.
Apart from this, the capital markets regulator has taken a number of regulatory measures in the recent past towards investor protection, he said at a function at the India International Trade Fair. These measures included introduction of upfront margin framework, risk-o-meter, e-KYC and protection of client collateral through pledge-repledge mechanism, he added.
T+1 means that market trade-related settlements will need to be cleared within one day of the actual transactions taking place.
Stock exchanges NSE and BSE, earlier this month announced that they will implement the T+1 settlement cycle in a phased manner with the bottom 100 stocks in terms of market value. 500 stocks will be added based on the same market value criteria from the last Friday of March and so on every following month.
Tyagi also warned gullible investors against unrealistic returns in the securities market.
