The important- awaited switch to T 1 ( trade plus one day) agreement cycle was blazoned by the leading stock exchanges and other request structure institutions on November 8.
In a common statement, the request players noted that they’ve come out with a roadmap for the perpetration of T 1 agreement cycle, whereby the medium will be introduced in a phased manner from February 25.
Once the T 1 cycle comes into effect, the request trade- related agreements will need to be cleared within one day of the factual deals taking place.
Presently, trades on the Indian stock exchanges are settled in two working days after the sale is done (T 2). The agreement cycle will be enforced in a phased manner and will apply only to the bottom 100 companies starting February 25, and from March 2022 onwards, the coming bottom 500 stocks will be available for preface to T 1 agreement, according to the common statement.
The decision has been taken by request Structure Institutions or MIIs — stock exchanges, clearing pots and magazines.
This comes after requests controller Sebi in September permitted stock exchanges to introduce T 1 agreement cycle from January 1, 2022 on any of the securities available in the equity member.
As per the statement, all listed stocks, across stock exchanges (BSE, NSE and MSEI), will be ranked in descending order grounded on diurnal request capitalization equaled for month of October 2021.
Where a stock is listed on multiple exchanges, the request capitalization will be calculated grounded on the price of stock at the stock exchange with loftiest trading volume during the period under review.
The list of stocks and exchanges where they’re available for trading will be published on website of all exchanges. Grounded on the ranking arrived, the nethermost 100 stocks will be available for preface of T 1 agreement, from February 25, 2022.
Later, from March 2022 onwards, on the last Friday ( trade day) of every month, the coming bottom 500 stocks from the list of stocks ranked will be available for preface to T 1 agreement.
In case Friday is a trading vacation, the same will be introduced on immediate coming trading day.
In case Friday is a trading vacation, the same will be introduced on immediate coming trading day. Any new stock getting listed after October 2021, will be added to list, grounded on the request capitalization calculated on the base of average trading price of 30 days after inception of trading.
In case, grounded on request capitalization, if the stock falls under the order (in terms of request capitalization) of stocks formerly under T 1 agreement also that stock also becomes eligible for T 1 agreement and will be introduced in T 1 agreement cycle on the last Friday ( trade day) of coming month.
This will also apply to new stock getting listed on account of original public immolation (IPO), commercial action or any other reason and the date of transition will be blazoned concertedly by all exchanges on which the stock is available for trading.
Securities Similar as preference shares, clearances, right entitlements, incompletely paid shares and securities issued under discriminational voting rights (DVR) will be transitioned to T 1 agreement along with the stock of parent company.
Farther, further than securities listed by the exchanges in the equity member of bourses will be transitioned to T 1 agreement cycle along with the last listed batch of securities as determined by theexchanges.Any security getting listed post the trade date of last listed batch of securities grounded on the ranking arrived will be directly introduced with T 1 agreement cycle.