#T+1SETTLEMENT

'T' is the transaction date: The abbreviations T+1, T+2, and T+3 refer to the settlement dates of security transactions that occur on a transaction
date plus one day, plus two days, and plus three days, respectively. Let's see its impact on different stakeholders and their reaction

FPIs and custodians

1. Association of global custodians has dissented over T+1.
2. T+1 would require FPIs to go for pre-funded trades, this may trigger reconciliation issues.
3. The global custodian handling the trade will also have to offer T+1 settlement.
4. This would need settlement of the trade at two clearing corporations.

Retail, Domestic Investors

1. T+1 would allow a faster turnaround of cash and stocks and boost trading turnover.
2. It is also expected to increase speculation.
3. However, it will pose a challenge in calculating the net asset value.
4. A stock with different settlement cycle on exchanges will have different prices.

Outlook & Global Scenario

1. The move will overburden domestic broking houses make India's capital market less attractive to global investors.
2. Asia Securities Industry and Financial Market Association(ASIFMA) has also dissented saying: China is the only major country that currently operates on T+1. It is troublesome for Global investors.
T3. he US, EU countries, Singapore, Australia, Hong Kong, Japan, and South Korea also follow the T+2 settlement cycle.