From compliance to catalyst: RegTech’s role in the blue economy

Purpose This study examines how SEBI’s RegTech-driven T+0 settlement system influences the Indian stock market. It highlights the economic and financial significance of the Indian Ocean region and bridges sustainability and technology. The study compares Blue Economy and Non-Blue Economy equities between June 23, 2023, and April 30, 2024. Design/methodology/approach The study utilizes an event-study framework, grouping securities into Blue and Non-Blue Economy categories. Each group is then distinguished into beta and non-beta cohorts. This helps to assess how stock prices and overall market behavior respond to the rollout of the T+0 settlement system. Findings The results reveal that the T+0 settlement system materially accelerates the incorporation of public information into share prices, underscoring semi-strong form market efficiency. Moreover, this innovation exerts differentiated effects on stock returns, with distinct outcomes observed across Blue Economy versus Non-Blue Economy securities and between beta and non-beta classifications. Originality/value This research merges cutting-edge regulatory technology with sustainability objectives in the Indian Ocean region. It underscores vital implications for maritime resources and industries. It thus provides insights to policymakers for cross-border collaboration, and the advancement of sustainable economic practices in regional financial markets.