Regulation Settlement T+0 SEBI

Settlement cycle changes 2025-26

From WebNotes, a public knowledge base. Last updated 20 May 2026. Reading time ~5 min.

The Indian equity settlement framework went through significant changes in 2025-26, building on the T+1 cycle introduction (January 2023) and the T+0 pilot (March 2024). This article summarises the changes and their effects on Zerodha clients and the broader retail market.

Recap: the move from T+2 to T+1 to T+0

Year	Cycle
Pre-2003	T+5
2003-2023	T+2
January 2023	T+1 (fully implemented)
March 2024	T+0 pilot launch (25 scrips)
2024-25	T+0 expansion phases
2025-26	T+0 broadly available; continued expansion

The direction is unambiguous: shorter settlement, less counter-party risk, faster fund cycling.

Key 2025-26 changes

1. T+0 scrip universe expansion

The T+0 segment expanded from the initial 25 large-caps to several hundred scrips by 2026. Mid-cap inclusion accelerated as exchange systems demonstrated they could handle T+0 throughput.

For the current scrip list, see Instant settlement T+0 stocks list .

2. T+0 session window extension

The original T+0 session window (09:15 to 13:30) was extended to better align with retail trading hours. The newer window typically extends to 15:00 (subject to SEBI / exchange updates).

This allows more retail flow to participate in T+0 without time pressure.

3. Direct payout to demat

Effective October 2024, direct payout to demat routes settlements directly from clearing corporation to client demat, bypassing the broker’s pool account. This is a settlement-side change with significant client-protection benefits.

4. F&O settlement enhancements

While T+0 currently applies to equity only, F&O settlement saw incremental changes:

Settlement price calculation refined for thinly traded contracts.
Physical settlement margin layer tightened for stock options.
Closing price methodology for the daily MTM settlement updated.

For details, see Settlement (F&O) .

5. Same-day fund payout via running account

Per SEBI’s running account framework, idle funds in client trading accounts are settled to bank accounts quarterly. The framework saw operational refinements in 2025 to ensure faster payouts on client request.

6. Inter-depository transfer speed

Inter-depository transfers (CDSL <-> NSDL) used to take T+1 to T+2; the 2025-26 enhancements brought this down to same-day or T+1 in most cases.

Why SEBI is pushing shorter cycles

Risk reduction

Shorter settlement windows mean:

Less counter-party risk.
Less broker float (reducing systemic risk).
Faster recovery in case of broker default.

Retail benefit

For retail investors:

Faster fund availability post-sale.
Shorter exposure between buy execution and ownership.
Cleaner mental model: trade settled = ownership settled.

Competitive position

India is now one of the few major markets with T+0 (instant) settlement available. This positions Indian markets as more efficient than US (T+1 from 2024), UK (T+1 from 2027 planned), and many other jurisdictions.

Effect on retail trader workflows

Cash recycling

Sell at 10:00 → proceeds usable for next buy by ~16:00 same day (T+0 scrip) or T+1 morning (T+1 scrip). Old framework: T+2 for some products.

Portfolio rebalancing

Same-day rebalancing across a T+0 portfolio is now feasible. Buy one scrip, sell another, both settle same day, both contribute to today’s net portfolio value.

BTST relevance

BTST (Buy Today Sell Tomorrow) was a workaround for the old T+2 / T+1 fund-availability gap. With T+0, BTST is less relevant for T+0-eligible scrips (same-day cycling is possible). For non-T+0 scrips, BTST remains a useful pattern.

Effect on broker product mix

For Zerodha :

T+0 segment available on Kite for eligible scrips.
Direct payout to demat enforced October 2024.
Settlement infrastructure updated for the faster cycle.
Reduced need for some product types (BTST product no longer needed for T+0 scrips).

For other brokers, similar adaptation has happened across 2024-26.

What’s next

Industry watch:

Full T+0 across all equity (not just selected list) is the next plausible step.
T+0 extension to F&O (currently equity-only).
Faster mutual fund settlement (currently T+1 / T+2 depending on scheme type).
Shorter pre-IPO listing windows.

The direction is clear: continued compression of settlement timelines.

External references

References

SEBI, T+0 instant settlement framework and expansion, circulars dated 2024-25.
SEBI, T+1 settlement cycle implementation, circular dated 7 September 2021.
SEBI, Direct payout to demat, circular dated 11 June 2024.
NSE Clearing, Settlement schedule and methodology, nseclearing.com.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 20 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.