SEBI Introduces T+0 Settlement Cycle for Top 500 Companies
SEBI has mandated the T+0 settlement cycle for the top 500 listed companies to enhance market efficiency and liquidity.
2-Minute Summary (TL;DR)
- T+0 settlement means same-day transfer of shares and funds.
- Applicable initially to the top 500 listed companies.
- Aims to reduce default risk and increase market liquidity.
- India is a global leader in implementing rapid settlement cycles.
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. |
| 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 refer to in the stock market?
- Trade plus 10 days
- Same-day settlement
- Trade plus 2 days
- Tax-free settlement
Explanation: T+0 settlement refers to the settlement of trades on the same day they are executed.
Q2. Which organization regulates the stock market in India?
- RBI
- IRDAI
- SEBI
- PFRDA
Explanation: The Securities and Exchange Board of India (SEBI) is the regulator for the securities and commodity market in India.
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.
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