Source: BS
Context:
The Securities and Exchange Board of India (SEBI) announced changes in the settlement schedule for cash and securities lending and borrowing mechanism (SLBM) market segments due to clearing corporation holidays.
Key Highlights:
- Reason for Revision: Clearing corporation holidays impacting normal settlement cycles.
- Affected Segments:
- Cash market
- SLBM market
- Objective: Ensure smooth settlement operations, avoid disruptions, and maintain market integrity.
- Cash Market: Trades in the regular stock market where shares are bought/sold for immediate delivery (T+2).
- SLBM: A market that allows investors to lend or borrow securities temporarily, facilitating activities like short selling and enhancing liquidity.
- Settlement Schedule: The timeline for transfer of money and securities post-trade.
