The Reserve Bank of India (RBI) says it expects the local market infrastructure to be capable of supporting settlement on T + 1 by as early as June this year.
The central bank told a conference in India this week that once the appropriate infrastructure to facilitate settlement on T+1 was in place, the Securities and Exchange Board of India (SEBI), the Stock Exchange in Mumbai (BSE) and the National Stock Exchange (NSE) would implement it. Currently, the Indian securities market follows a T+2 settlement timetable.
“There is no confirmed time frame for implementation of securities settlement on T + 1,” says a spokesman for Citigroup in Mumbai. “However, the central bank clearly aims to establish the necessary system and market infrastructures by June 2005.”