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Mar 06, 2013
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NSE introduces same-day settlement scheme
The National Stock Exchange (NSE) has introduced a same-day settlement scheme, under which the members can save on additional margins if the payments for trades are made before the opening of the next trading session.In a circular to come into effect from March 15, NSE said the members opting for this ‘T+0’ facility (which refers to settlement on same day of the trading) would need to make the payments by 8.30 a.m. on the next settlement day. The day’s trading begins at about 9 a.m. on the bourses.Normally, the members are allowed to make the payments after the opening of trading hours in the next trading session under the T+1 settlement.However, any major crash in stock prices exposes the members to the risk of paying scaled-up margins, if the existing margins become insufficient to meet the payment obligations under the existing facility. The new facility would mitigate this risk of additional margin payment obligations.
Source -
http://www.moneycontrol.com
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