Explanation:

Only statements 1&3 are correct.

• The Securities and Exchange Board of India (SEBI) recently approved the launch of the beta version of the T+0 settlement on an optional basis.

About T+0 Settlement

• T+0 settlement means that the funds and securities for a transaction will be settled on the day the trade was entered.

• At present, the Indian securities markets operate on a T+1 settlement cycle, where the settlement happens on the next day of trade. 

• In 2002, the regulator cut down the settlement period from T+5 to T+3, and in 2003, SEBI further reduced it to T+2. In 2021, the T+1 settlement started and was gradually implemented, with the final phase completed in January 2023.

• The T+0 settlement cycle will now be offered as an alternative alongside T+1. 

Advantages

• Instant receipt of funds and securities to the investor. 

• It will eliminate the risk of any kind of settlement shortage and give greater control over funds and securities to the investor.

• There is expected to be lower counterparty risk and increased liquidity in the market.

• Although the T+0 settlement system is not as common as T+1 or T+2 settlement cycles, there are a few countries and markets that have adopted T+0 settlement.

• The Moscow Exchange (MOEX), Korea Exchange (KRX), Taiwan Stock Exchange (TWSE), and Hong Kong Stock Exchange (HKEX) offer T+0 settlements for certain types of trades and transactions.

Hence option 2nd is correct.