According to a report by CoinDesk, Madhabi Puri Buch, Chairman of the Securities and Exchange Board of India (SEBI), stated on Monday (11th) that if regulated markets cannot provide tokenization and real-time settlement, investors may turn to other areas such as cryptocurrencies.
The Securities and Exchange Board of India announced on Monday that it will introduce a faster stock settlement system. According to local media reports, India is planning to introduce a same-day settlement cycle (T+0) on an optional basis starting from March 28, making it the second country after China to implement such a cycle. Other countries typically settle within two days (T+2 days).
Buch stated that India is further ahead in terms of real-time settlement speed compared to other jurisdictions, and warned that a significant portion of the market may turn to cryptocurrencies. However, according to BusinessLine, foreign portfolio investors have been complaining about the business challenges of shifting funds to comply with the faster settlement cycle.
The broader plan also includes adopting real-time settlement, which will come into effect from March 2025. According to a report by Business Standard, this plan is still pending approval by the market regulator’s board, which is set to meet on Friday.