India Pushes for Instant Settlements to Rival Crypto Platforms

The chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, has highlighted the urgency for regulated markets to adopt instant settlement processes to prevent investors from flocking to the crypto space.

An optional same-day settlement cycle will be introduced from March 28, positioning India ahead of most countries that still adhere to the standard two-day settlement period.

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The broader vision is to fully implement instant settlement across the market by March 2025. However, this plan awaits approval from SEBI's board, which is expected to convene on Friday.

Buch expressed concerns that without offering comparable benefits such as tokenization and instant settlements, traditional markets might lose a significant share of investors to crypto.

If our well-regulated market cannot compete with the crypto world and cannot say we also offer you tokenization and instantaneous settlement over the medium term, I won’t even say long term, you should expect investors to move.

SEBI's stance reflects a proactive approach to retain investor interest in regulated markets. The move towards faster settlements indicates a significant shift in strategy to keep pace with the digital age's demands for immediacy.

This decision is especially relevant, knowing that India is one of the nations showing the most enthusiasm for crypto, particularly among the lower-middle-income countries, according to Chainalysis.