According to CoinDesk, Madhabi Puri Buch, the 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 the introduction of 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 from March 28th, making it the second country after China to implement such a cycle. Other countries typically settle within two days (T+2).
Buch mentioned 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 shift towards cryptocurrencies. However, according to BusinessLine, foreign portfolio investors have been complaining about the business challenges of transferring funds to comply with the faster settlement cycle.
The broader plan also includes adopting real-time settlement, which will be effective from March 2025. According to Business Standard, the plan is still pending approval from the market regulatory body’s board, which will convene a meeting on Friday.
