India to Introduce T+0 Trade Settlement Cycle to Compete with Cryptocurrencies

India is set to revolutionize its stock market with the introduction of a faster trade settlement mechanism, aiming to stay competitive in the face of increasing investor interest in cryptocurrency exchanges.

The Securities and Exchange Board of India (SEBI) chair, Madhabi Puri Buch, recently announced the plan to implement a T+0 trade settlement cycle by March 28. This new service will be optional for traders, catering specifically to those seeking same-day settlement.

Until now, the Indian stock market has been operating on a T+1 settlement cycle since 2021, meaning all stock trades are settled the following day. The transition to T+0 settlement cycle is seen as crucial by Buch to keep pace with the instantaneous settlements offered by cryptocurrencies. Investors today expect quick and efficient transactions, and the move to T+0 aims to meet those expectations.

SEBI highlights the benefits of T+0 and instant settlement cycles, including immediate receipt of funds and securities, elimination of settlement shortages, and greater control over investments for investors.

In related news, the Financial Intelligence Unit (FIU) issued notices of noncompliance to several cryptocurrency exchanges for operating illegally in India. Binance, HTX, Kraken, and others were given a deadline to comply with Indian KYC and AML regulations.

Despite the regulatory challenges faced by cryptocurrencies in India, the country is actively embracing blockchain technology in various sectors. Over eight million government-issued documents are now hosted on five different blockchain platforms, including Hyperledger Fabric, Hyperledger Sawtooth, and Ethereum. These platforms support initiatives like certificate chain, document chain, drug logistics chain, judiciary chain, and property chain.

As India continues its blockchain adoption journey, the focus remains on staying competitive in the evolving financial landscape while ensuring regulatory compliance and security. Stay updated with more news and insights on Global Crypto News.

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