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The BSE Limited is working on T+1 rolling settlement on an optional basis. In a notice to the members, the BSE said, the exchange should have flexibility to offer either T+1 or T+2 settlement cycle on any of the securities.
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"To facilitate this and for the benefit of market participants, an identifier shall be provided in the scrip master file indicating the applicable settlement cycle for that security," the exchange said and added: "Settlement cycle shall be indicated in the scrip master file against each security having value as ‘1’ – for securities with settlement cycle as T+1 or ‘2’ for securities with settlement cycle as T+2".
Early September, markets regulator SEBI had mooted T+1 settlement cycle for completion of share transactions on optional basis in a move to enhance market liquidity.
The regulator has decided to provide flexibility to stock exchanges to offer either T+1 or T+2 settlement cycle for completion of share transactions.
"Based on discussions with Market Infrastructure Institutions (Stock Exchanges, Clearing Corporations and Depositories), it has been decided to provide flexibility to Stock Exchanges to offer either T+1 or T+2 settlement cycle," SEBI circular said.
The BSE has provided a detailed scrip master file format changes and a sample file for easy understanding of trading members.
"Trading members and vendors having their trading application connecting through ETI API are requested to take note of the same and make necessary changes to their trading application," it said.
Revised test file shall be made available from November 1 in Simulation environment. The new indicator should be available in the scrip master file with effect from Monday January 3, 2022 (file made available on end-of-day Friday, December 31, 2021), the circular further said.