Shillong, September 6: SEBI’s initiative for one-hour trade settlement is set to accelerate cash flow for investors, according to A Balakrishnan, Executive Director of Geojit Financial Services. He expressed confidence in the feasibility of this plan, citing the success of UPI in instilling trust in near-real-time settlement.
As per IANS, this move promises faster settlements and liquidity, akin to the efficiency of UPI transactions. It signifies a significant stride towards transparency and efficiency in the Indian stock market, providing investors with real-time asset access, thus attracting more resident investors.
Rishi Agrawal, CEO and Co-Founder of Teamlease RegTech, lauds this development, foreseeing a shortened settlement cycle that enhances the appeal of capital market investments.
Furthermore, it is expected to release substantial margin funds held by brokers, although it necessitates technology adjustments for market participants like brokers, clearing corporations, depository institutions, and fund houses to transition from end-of-day batch processing to hourly processing.