Why foreign funds are opposing SEBI's instant settlement plan?
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Foreign Portfolio Investors (FPIs) are concerned about the Securities and Exchange Board of India's plan to introduce new trade settlement plans in equity markets. SEBI aims to transition from the current T+1 settlement to an optional T+0 settlement, and eventually to instant settlement within an hour of the trade. However, the Asia Securities Industry and Financial Markets Association (ASIFMA) warns that this move may fragment market volumes due to the existence of two settlement cycles.