BSE set to roll out T+0 settlement from Thursday

BSE Limited is “fully geared” to launch the beta version of T+0 settlement for 25 securities starting March 28, its MD & CEO Sundararaman Ramamurthy said on Tuesday.

On strategic plans to increase its share in India’s derivatives market, Ramamurthy emphasised BSE’s approach as a complementary exchange, fostering mutual support between BSE and NSE for symbiotic market growth.

“It is not question of competition and making myself to be the go to exchange for derivative products. It is the market growth, market vibrancy that are driving us (BSE and NSE). It is not one upmanship or competition we are looking at to drive ourselves up,” Ramamurthy said in an interview.

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Ramamurthy said that BSE, which was trying to find its feet in the derivatives segment, had share of 15 per cent on the notional side and 6 per cent share of premium. 

“This is clearly indicative of the fact that we have a long way to go and we are working on it. We are working in multi pronged way to increase number of market participants and FPIs. We also want more volumes in the later weeks monthly contracts and futures. Broadbasing of contract is what we are looking at and in the process make BSE more and more vibrant and meaningful for the market,” he said.

Over the last ten months, BSE had come in for lot of attention for the progress it made in the derivatives segment through launch of Sensex and Bankex (relaunch) related derivative products. 

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T+0 settlement 

Ramamurthy, who has been at the helm of this exchange since January 2023, said that BSE has developed the software and had a mock trading session on March 23. “We feel the mock trading was successful from our parameters and we have informed regulator as well. We are slated to go live on Thursday. We have been engaging with brokers including big ones so that they get the benefit of T+0 for their clients. We hope it will be successful”.

He also highlighted that it was “not a full fledged migration,” but only an option at a beta stage. 

“From our perspective, we are ready to go live on Thursday for the beta version as regards technology as well as exchange and clearing corporation is concerned,” Ramamurthy said.

CDSL Stake

Ramamurthy said that BSE was not looking to sell or dilute its 15 per cent stake in CDSL –the country’s only listed depository.

“Our stake sale last year was a regulatory requirement to bring it to an accepted level. Since we have already achieved regulatory standard, there is no need for us at this point of time and there is no thought process at this point of time for us to sell any further stake in CDSL,” he said.

Currently, a stock exchange is allowed only to hold a 15 per cent stake in a depository. In January 2021, SEBI had capped the shareholding limit at 15 per cent for institutions and reduced it from earlier 24 per cent.

SME platform

On the SME platform activity, Ramamurthy said that BSE had in last 14 months introduced stringent criteria and raised the bar on listing of SMEs. 

“We have also recently reviewed all criteria for migration from SME to main board. We have revised it. We want only very good companies migrating from SME to main board,” he said. 

“Entry criteria, listing criteria and migration parameters have all been tightened and stringent risk management measures are in place that will take away surveillance concerns”.

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