BSE Supercharges Block Deals-T+0 Settlement Cycle Gets Green Light from May 2

Bombay Stock Exchange (BSE) has announced opening the Block Deal Window in the T+0 settlement cycle from May 2, 2025. It is a positive move towards making the trade more efficient and flexible for the market players.

 

In the T+0 settlement cycle, the trades are settled on the day they are traded, and both the securities and the funds are exchanged on the trade date itself. This is as opposed to the current T+1 settlement cycle, where settlement takes place one business day following the trade. The T+0 cycle is voluntary and initially being made available for certain securities, with all investors being able to participate as long as they meet the necessary timelines and procedures.

 

The new Block Deal Window under T+0 settlement will coexist alongside the current block deal facility within the T+1 cycle. The block deal specific session for the T+0 securities will take place from 8:45 a.m. to 9:00 a.m. every day. The reference price for the block trade will be either the previous close or the adjusted close of the relevant T+1 security. The block deal price range will be ±1% of the reference price.

 

This program will be offering increased liquidity and accelerated settlement for large trades, albeit with the same conditions and risk management as the trades in the T+1 block deal window. Opening the T+0 block deal window is in compliance with regulatory guidance to offer more settlement options and enhance market infrastructure.

 

Source: The Hindu Business Line