India's SEBI to Accelerate Trade Settlements to Compete with Crypto Exchanges
Summary:
SEBI, India's Security and Exchange Board, plans to introduce an accelerated T+0 trade settlement cycle by March 28 to combat the growing popularity of cryptocurrency exchanges. SEBI chair Madhabi Puri Buch indicated that the instant settlement cycles will benefit investors, including prompt transfer of shares and greater financial control. Despite India's skepticism of cryptocurrencies, the country is continuously implementing blockchain technology for nationwide programs while major crypto exchanges are being urged to comply with Indian KYC and AML requirements.
A new accelerated trade resolution process for the Indian stock market is soon to be established in order to retain competitiveness amid the soaring popularity of cryptocurrency exchanges. Madhabi Puri Buch, Chair of the Securities and Exchange Board of India (SEBI), disclosed intentions on March 11 to launch a T+0 trade settlement cycle by March 28. The move is designed particularly to accommodate traders who desire settlement to occur on the same day. From 2021, the Indian stock market has been functioning on a T+1 settlement cycle, which means transactions are resolved on the day after they have been executed.
Buch affirmed that transitioning towards T+0 is crucial for the Indian stock market to remain in competition with cryptocurrency exchanges. It is her belief that investors are preferring instantaneous transaction settlements, and unless regulated markets can offer comparability to cryptocurrencies in the immediate future, traders will favor environments where this is already available.
SEBI suggests instantaneous settlement cycles will bring about a number of benefits, such as the prompt transfer of funds and stock holdings to the investor, as well as eliminating any risk of settlement shortcomings and providing an enhanced level of control over funds and shares.
The Financial Intelligence Unit (FIU) of India's Ministry of Finance recently issued a notification of non-compliance to a number of crypto exchanges, including Binance, HTX, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex and Bitfinex, citing illegal operations within Indian territory as of December 28, 2023. The exchanges were given a 12-day period to comply with Indian KYC and AML requirements.
Despite continued skepticism towards cryptocurrency, India nevertheless continues to implement blockchain technology across a selection of nationwide programs. The nation recently disclosed over eight million government documents are being hosted across five distinct blockchain platforms.
The main platforms utilized by India include Hyperledger Fabric, Hyperledger Sawtooth, and Ethereum. Currently, the five blockchain products employed within in India are certificate chain, document chain, drug logistics chain, judiciary chain and property chain.
Published At
3/13/2024 4:05:20 PM
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