Stock exchanges, clearing corporations and depositories have finalised the road map to roll out the next-day rolling settlement cycle for equity trading from Feb. 25.
This coordinated approach seems to have soothed fears of foreign portfolio investors who had earlier opposed the move to T+1.
Asia Securities Industry & Financial Markets Association said the two Indian stock exchanges "are acting in concert avoiding any fragmentation of the market which we had feared".
Most foreign portfolio investors won't be impacted until August, September or October 2022 when the stocks that they tend to trade in will move to T+1 settlement, the statement said.
"This leaves more time for market participants, from FPIs to their custodians and brokers, and the stock exchanges and regulators to come up with solutions to meet the shortened T+1 settlement cycle without triggering pre-funding by investors that are based in the U.S. and Europe which are 10-15 hours behind India time."
(Updates an earlier version to add ASIFMA comment)
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