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SEBI Revises Cash and SLBM Settlement for Clearing Holidays

10 September 20251 min read
BANKING & FINANCESEBI Revises Cashand SLBMSettlement forClearing Holidays10 September 2025safalsetu.com

Why in the news

SEBI revised when trades in the cash and SLBM segments would settle, since clearing corporations were closed on certain days.

Key facts

  • Regulator: Securities and Exchange Board of India (SEBI).
  • Reason: clearing corporation holidays disturbing the normal settlement cycle.
  • Segments affected: the cash market and the SLBM (securities lending and borrowing mechanism) market.
  • Goal: keep settlement smooth, prevent disruption and protect market integrity.

Terms to know

TermMeaning
Cash marketRegular stock market where shares are bought or sold for immediate delivery (T+2)
SLBMMarket for temporarily lending or borrowing securities; enables short selling and adds liquidity
Settlement scheduleTimeline for moving money and securities after a trade

Exam angle

  • Full form of SLBM: securities lending and borrowing mechanism.
  • Cash-market delivery cycle mentioned: T+2.
  • Body that announced the change: SEBI.

Test yourself

1. Why did SEBI change the settlement schedule for cash and SLBM segments?

The revision was due to clearing corporation holidays.

2. What does SLBM stand for in the SEBI settlement notes?

SLBM is the securities lending and borrowing mechanism.

3. Which settlement cycle is mentioned for the regular cash market?

The notes describe the cash market as immediate delivery (T+2).

This topic is part of Daily Current Affairs 9 September 2025 (14 topics).

All topics of the dayDay quizSeptember 2025

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