SEBI’s big change in the stock market, transfer and settlement of shares will be completed in a day from the new year

Now the process of ownership or transfer of shares in the stock market will be completed in one business day. This rule will be applicable from next year. According to this, the process of transfer or ownership of shares will be completed a day after the completion of the trade.

Retail investors will have convenience

SEBI will allow stock exchanges to offer T+1 trade cycle option faster than the existing T+2 cycle with effect from January 1, 2022. This will benefit retail investors. Retail investors have been demanding this for a long time.

SEBI It has been decided after consultation with the market infrastructure institutions such as stock exchanges, clearing corporations and depositors, that the stock exchanges will have the facility to undertake either T+1 or T+2 settlement cycles. Make an offer According to the new circular of SEBI, any stock exchange can opt for T+1 settlement cycle for any share for all the shareholders. However, giving at least one month prior notice to change the settlement cycle Will happen.

According to SEBI, the new system will come into effect from January 1, 2022. SEBI has directed the Clearing Corporation and Depositories to take necessary steps in this regard.

If you are going to invest in mutual funds for the first time, then do not make these mistakes even by mistake, otherwise money will be lost.

T+2 system was also implemented in 2003

In 2003, SEBI reduced the time taken to complete the deal from ‘T+3’ to ‘T+2’. Earlier, the Association of National Exchange Members of India (ANMI), a group of over 900 stockbrokers, in a letter to SEBI, raised concerns about the T+1 settlement system. ANMI said that the new system should not be implemented without addressing the operational and technical challenges.