SEBI Expands T+0 Settlement Cycle to All Top 500 Listed Companies
The Securities and Exchange Board of India (SEBI) has expanded the instantaneous T+0 settlement cycle to the top 500 companies by market capitalization.
Key Points for Quick Revision
- T+0 settlement expanded to top 500 listed companies.
- Settlement of funds and shares occurs on the same day.
- Aims to increase market liquidity and reduce counterparty risk.
- India becomes a global leader in settlement efficiency.
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| Banking (IBPS / SBI) | Very High | 6–10 | RBI policy, inflation, CRR/SLR, monetary committee decisions — banking exams test the full spectrum. |
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | Budget highlights, GDP data, and government economic schemes appear in SSC CGL GK section. |
| UPSC / State PCS | High | 10–20 | Economy is a core UPSC subject. Economic Survey, budget, and policy changes are heavily tested. |
What to Memorize from This Topic
- Key budget figures: fiscal deficit %, GDP growth projection, key scheme allocations
- RBI rate decisions: Repo rate, CRR, SLR, Reverse Repo — current values
- Rankings: India's position in ease of doing business, hunger index, HDI
- Abbreviations: FRBM, NBFC, MPC, PMGSY, PMGKAY — full forms and purpose
- Trade data: import-export balance, major trading partners
Practice Questions
Q1. What does 'T+0 settlement' mean in the stock market?
- Trade plus 1 day
- Trade plus 2 days
- Same-day settlement
- Trade plus 5 days
Explanation: T+0 settlement means the trade is settled on the same day it is executed.
Q2. Which regulator oversees the implementation of settlement cycles in India?
- RBI
- SEBI
- IRDAI
- PFRDA
Explanation: SEBI (Securities and Exchange Board of India) is the regulator for the securities market.
How to Prepare Economy & Finance for Government Exams
Track current Repo Rate, Inflation rate, and GDP growth. These three numbers appear in almost every banking exam.
Keep a running note of new schemes with their ministry, launch date, and target beneficiary group.
Focus on the Economic Survey and Union Budget highlights — these single documents generate dozens of exam questions.