SEBI plans instant equity settlement by 2023 despite offshore investors' concerns over liquidity risks
-
India's securities regulator SEBI plans to allow instant settlement of equity trades by October 2023, alongside the current T+1 system.
-
Offshore investors have raised concerns that instant settlement could fragment liquidity and increase costs and risks.
-
Investor groups like ASIFMA say having two settlement cycles risks fragmenting liquidity and increasing systemic risk.
-
SEBI believes instant settlement will benefit retail investors in India and is consulting the industry to address risks.
-
Domestic investors have also raised concerns that instant settlement could reduce opportunities for intraday trading and affect price discovery.