India is moving to set up same-day market settlement before the end of fiscal year ending March 2024 and subsequently to instantaneous settlement a year later, the chairperson of country's markets regulator said on Friday.

Currently trades in India are settled in "T+1" or one day after the trades are initiated. T+0 would mean settlements in the same day and instant settlement would ensure trades are settled immediately.

"We are now moving to optionally T+0," Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch told an industry event in New Delhi. "It will happen before the end of this financial year and one year from there (it will be)instantaneous."

Reuters had earlier reported in September that India's markets regulator would implement settlement within one hour of the trade, with instant settlement coming some months later.

India is the second country after China to operate on a short settlement cycle of one day. Settlement in most other major economies trades is completed within two days. (Reporting by Aftab Ahmed; Writing by Kanjyik Ghosh; Editing by Kim Coghill and Sam Holmes)