Addressing the 7th Annual Financial Services Convention here, Sebi board member Prof JR Varma said, "Indian markets have efficient settlement system.

Despite this, the payment to the investors takes place after 10-15 days. If we want rolling settlement to come into place, the banking system needs to be developed especially in the area of payments."

"If the delivery system of the stock exchange is fast, why not the payment system," he asked.

The issue of rolling settlement has been debated considerably with stock brokers unwilling to accept the new mode of settlement for liquid counters fearing sharp drop in volumes.

Prof Varma said the market regulator was going ahead with various reforms measures including rolling settlement. Towards this, Sebi, earlier this week, allowed voluntary rolling settlement in A group shares with Borrowing and Lending Scheme (BLESS) and Automated Lending and Borrowing Mechanism (ALBM) facility.

At present, there were two major bottlenecks hampering the payment system. One of which is the poor payment system infrastructure and the absence of a wide network of electronic fund transfer facility. The inability of the settlement agencies like the Clearing Corporation of the stock exchanges and also the depositories to be part of the RBI's funds clearing mechanism was another major factor.