India to move to T+1 settlement from Friday: Here's what it means

 India To Start with T+1 stock settlement from February 25, which means that trade-related settlements must be done within one day of the transaction’s completion.

Currently, trades on the Indian stock exchanges are settled within two days, just like most major markets such as Singapore, Hong Kong, Australia, Japan, and South Korea. Indian exchanges, however, will be moving to T+1 settlement from February 25 in a phased manner. T stands for trade day. Here is the lowdown on what the shorter settlement cycle means:

What is the new T+1 settlement cycle?

T+1 means that trade-related settlements must be done within one day of the transaction’s completion. Trades on Indian stock exchanges are currently settled in two working days after the transaction is completed (T+2). For example, if you buy shares on Wednesday, they will be credited to your Demat account by the next day, which is Thursday. Till now they were getting settled on Friday.

Will it be a gradual transition?

Initially, on the last Friday of February, only 100 stocks that are placed at the bottom according to their market valuation will be placed under the new settlement cycle. After that, 500 more stocks will be added every last Friday of subsequent months, until every stock is placed under the new settlement system…Read More

NSE, MCX in merger talks, could submit proposal to Sebi this month

The merger will help NSE and MCX cement their leadership position both in the equities and commodity derivatives space

Market News :  The National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX) entered into merger talks ahead of the implementation of the universal exchange framework in October, said a top official. The two entities are planning to approach market regulator Securities and Exchange Board of India (Sebi) as early as this month, according to the official.

The merger will help NSE and MCX cement their leadership position both in the equities and commodity derivatives space.

Both the exchanges have readied a blueprint for the merger proposal which will be discussed with Sebi. Sources say NSE entered talks with the commodity bourse soon after the market regulator allowed exchanges to dabble both in the equities and commodities space. The decision was taken by the Sebi board at its December 2017 meet.

NSE spokesperson said, “We will not comment on market speculations.” An query sent to MCX did not elicit immediate response.

Sources say that NSE which already has a strong hold in equity and index derivatives wants to be leader in the commodity segment as well.

“Commodity space is still evolving and has great opportunity to develop in the current scenario. So, having a dominant player will help bring in lot of economies of scale,” explained a person in the know.

In the equity derivatives space, NSE has near monopoly, while in commodity derivatives MCX enjoys a lion’s share of 90 per cent.

“It is premature to share any further details of the proposal, since talks are still in the preliminary stage,” said the official cited above.

Click Here : NSE MCX Merger