Mon, Nov 10, 2014 at 19:09
Since the time moneycontrol.com was launched 15 years ago, the Indian stock market has been through quite a few momentous changes.
We try to capture some of the major events in the history of the Indian market during this time.
Introduction of rolling settlement cycle
India joined leading global markets across the world when it moved from weekly account-period settlement of trades (where trades were bunched up over a week and settled on a single day) to a rolling settlement cycle.
On December 31, 2001, Sebi mandated exchanges to start with T+5 cycle (settlement on fifth business day after day of trade) for all securities, which was then shortened to T+3 on April 1, 2002 and T+2 on April 1, 2003.
The introduction of the rolling settlement cycle contributed in a big way towards increasing the depth of the Indian stock market by reducing settlement risks as well as facilitating transfer of securities and money to buyers and sellers quicker than in the earlier settlement mechanism.