Chairman of the Indian Stock Exchange: Investors Expected to Shift to Cryptocurrency and other Fields If Regulated Markets Cannot Provide Real-Time Settlements

Chairman of the Indian Stock Exchange: Investors Expected to Shift to Cryptocurrency and other Fields If Regulated Markets Cannot Provide Real-Time Settlements

Chairman of the Indian Stock Exchange: Investors Expected to Shift to Cryptocurrency and other Fields If Regulated Markets Cannot Provide Real-Time Settlements

According to CoinDesk, Madhabi Puri Buch, Chairman of the Securities and Exchange Board of India (SEBI), stated on Monday (11th) that if regulated markets cannot provide tokenization and real-time settlement, investors may turn to other areas such as cryptocurrencies.

The Securities and Exchange Board of India announced on Monday that it will introduce a faster stock settlement system. According to local media reports, India plans to introduce a same-day settlement cycle (T+0) on an optional basis starting from March 28th, making it the second country to implement such a cycle after China. Other countries usually settle within two days (T+2).

Buch stated that India is further ahead in terms of real-time settlement speed compared to other jurisdictions and warned that a significant portion of the market may shift towards cryptocurrencies. However, according to BusinessLine reports, foreign portfolio investors have been complaining about the business challenges of transferring funds to comply with the faster settlement cycle.

The broader plan also includes adopting real-time settlement, which will come into effect from March 2025. According to Business Standard reports, the plan is still pending approval from the market regulator’s board, which will hold a meeting on Friday.