India plans rapid stock settlement to reduce crypto migration

India will soon introduce a fast trading system for the stock market to improve competitiveness against the growing trend of crypto exchanges from investors.

In the year On March 11, Securities and Exchange Board of India Chairman Madhabi Puri Buch announced plans to introduce a T+0 trading settlement cycle on March 28. The service is an option for traders and is especially available for same-day buyers. Settlement.

The Indian stock market has been operating on a T+1 settlement cycle since 2021, which means that all stock transactions are settled on the next day. Similar to T + 0, the settlement cycle of T + 1 started in a progressive manner.

According to Buch, a move to T+0 is necessary for the Indian stock market to compete with cryptocurrencies. She believes that investors expect a quick settlement, and “if a well-regulated market cannot compete with the crypto world in the near future, then investors will move to the place that already offers it.

It brings benefits like SEBI, T+0 and fast settlement cycle to the investor like quick receipt and guarantee. Also, same-day settlements eliminate any risk of settlement shortfalls and give the investor more control over the funds and the investor.

Related: India's Supreme Court Rejects Crypto Petition, Highlights Legislative Nature

Recently, the Financial Intelligence Unit (FIU) — an agency of India's finance ministry that collects financial information about crimes under the country's Prevention of Money Laundering Act — issued a non-compliance notice.

Binance, HTX, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex and Bitfinex received notices of illegal operations in India on December 28, 2023. The exchanges know your Indian customer and are given 12 days to comply with the antitrust. – Financial reference rules.

India continues to embrace blockchain technology through various national initiatives, even though it has shown an unchanging shoulder to crypto. The country recently announced that it will host more than eight million government-issued documents on five different blockchain platforms.

India primarily uses three blockchain platforms to develop its products: Hyperledger Fabric, Hyperledger Sawtooth and Ethereum. The five blockchain products currently in use in India are certificate chain, document chain, pharmaceutical logistics chain, judicial chain and property chain.

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