State Bank of India, Bajaj Auto among 25 stocks eligible for same-day settlement, says BSE

India's Bajaj Auto BAJAJ_AUTO, Bharat Petroleum BPCL and State Bank of India SBIN are among 25 stocks eligible for optional same-day settlement starting from March 28, the Bombay Stock Exchange (BSE) BSE said on Wednesday.

Indian markets operate on a T+1 settlement cycle for all stocks currently, which means that the purchase and sale of shares will reflect in the demat accounts of investors one day after the transaction.

The new T+0 settlement cycle reduces transactional risks and enhances market efficiency by providing immediate liquidity to investors, said analysts at ICICI Direct.

Implementing this could also result in increased trading opportunities and reduced settlement risks for investors, they added.

The T+0 settlement will be optional for 25 stocks and will be applicable only for trades executed between 9:15 a.m. and 1:30 p.m. IST, India's markets regulator SEBI said in a circular on March 21.

To avoid market distortions due to price discrepancies for shares trading in both settlement cycles, trading in the T+0 cycle will be subject to a price band of 100 basis points above or below prices under the T+1 cycle, according to BSE.