The time taken to resolve the trade may be reduced Sebi wants to reduce the time taken in the trade settlement from two days to one day The trade solution now takes 2 days This is called T-2 SEBI wants to make it T1 This change will increase liquidity and capacity in the market, while reducing the risks associated with the system. The T-1 system means that it will be resolved the next day of the transaction, so that the share buyer will get a share in his or her Demat account the next day of the transaction. The next day of the share money transaction, the share will come to the seller’s bank account Suppose you sold the stock of ABC Ltd on Monday In that case, the money in your bank account will arrive on Tuesday. It takes two days now
Now Sebi is thinking of reducing the time taken in the solution The issue’s end has the recaptured Doomsday in the control of the KGB and SEBI. . T + 2 systems are followed in the stock markets of most developed countries in the world. India replaced the T3 system 17 years ago with the T3 system
SEBI adopted the T5 system in July 2001 In April 2002, the T-3 system was replaced The T-2 was then reduced to April 2003 In order to reduce this further, the distribution and banking payment system needs to be made more active. The brokers said it was possible to adopt the T-1 system due to changes in the new rules of the Upper Margin and the change in the rules for transferring shares placed in offline accounts.
Under the new margin rule, investors will have to share the initial amount or broker before the contract expires. The upfront margin contains the ‘value is a risk’ margin and the ‘extreme loss margin’. The stock exchange calculates this based on market changes Until now, brokers give customers time to pay for its transactions and payments in two working days In this way, the broker gives the customer their own front margin