MUMBAI: The stock exchanges of India have decided to start the T+1 equity settlement cycle from February 25, 2022, Securities and Exchange Board of India (Self) for phase-wise implementation, said a joint statement by the exchanges and depositories.

Stock exchanges said the bottom 100 shares, based on average daily market capitalization, would be brought under the new settlement mechanism in October, followed by 400 shares in March. The last batch of stock will be brought under the new arrangement by January 27, 2023.

Bourses said that any new stock to be listed after October 2021 will be added to the list on the basis of market capitalization calculated on the basis of the average trading price of 30 days from the commencement of trading.

In September, the capital markets regulator allowed stock exchanges to move towards T+1 settlement, which would further speed up the settlement process in the stock market from two days earlier to a day earlier.

However, SEBI’s move has faced opposition mainly from foreign portfolio investors (FPIs), who have raised concerns over the logistics of moving to the T+1 settlement system. In September, several foreign investor forums had filed a formal request with SEBI to postpone the implementation of the new system, ET had reported.

Here is a list of the first 100 shares that will go into T+1 settlement from February 25: