India devises expedited stock settlement measures to curb crypto migration speed

India is set to introduce a faster trade settlement mechanism for its stock market in order to remain competitive with the growing popularity of crypto exchanges among investors.
On March 11, Madhabi Puri Buch, the Chair of the Securities and Exchange Board of India (SEBI), announced the plan to implement a T+0 trade settlement cycle by March 28. This optional service is specifically designed for traders who require same-day settlement.
Currently, the Indian stock market operates on a T+1 settlement cycle, meaning that all stock trades are settled on the following day. The transition from T+1 to T+0 has been introduced gradually.
Buch believes that adopting the T+0 settlement cycle is crucial for the Indian stock market to compete with cryptocurrencies. She argues that investors now expect instant settlements, and if the well-regulated market fails to offer this in the near future, investors will turn to the crypto space that already provides it.
SEBI states that T+0 and the instant settlement cycle will offer advantages such as immediate receipt of funds and securities for investors. It will also eliminate the risk of settlement shortages and provide investors with greater control over their funds and securities.
In related news, the Financial Intelligence Unit (FIU), an agency under India’s Ministry of Finance, recently issued notices of noncompliance to several crypto exchanges. Binance, HTX, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex were all given 12 days to comply with Indian Know Your Customer and Anti-Money Laundering regulations after allegedly operating illegally in India since December 28, 2023.
Despite India’s cautious stance towards cryptocurrencies, the country continues to embrace blockchain technology in various national initiatives. It has revealed that it currently hosts over eight million government-issued documents on five different blockchain platforms.
India primarily uses three blockchain platforms, Hyperledger Fabric, Hyperledger Sawtooth, and Ethereum, to develop these products. The five blockchain products currently utilized in India are certificate chain, document chain, drug logistics chain, judiciary chain, and property chain.