2003-0406 T+2 Rolling Settlement - SEBI circular, Activity schedule & operative guidelines
Circular No. NSDL/PI/2003/0406
Date : March 7, 2003
All Participants are hereby informed that Securities and Exchange Board of India (SEBI) vide its circular no. D&CC/FITTC/CIR-19/2003 dated March 4, 2003 has intimated its decision to shorten the existing T+3 rolling settlement to T+2 rolling settlement w.e.f. April 1, 2003. The time schedule prescribed by SEBI for implementation of T+2 rolling settlements, beginning from April 1, 2003, is as follows:
||By 11:00 A.M.
||Confirmation of all trades (including custodial trades). Facility of an exceptional window for late confirmations would be made available by the exchanges.
||By 1:30 P.M.
||Processing and downloading of obligation files to brokers / custodians
||By 11:00 A.M.
||Pay-in of securities and funds
||By 1:30 P.M.
||Pay-out of securities and funds
- Participants shall accept instructions from the Clients, in physical form upto 4 p.m. (in case of electronic instructions upto 6 p.m.) on T+1 for pay-in of securities, viz.; instructions to transfer securities from Client account to CM Pool account, Inter-Settlement Instructions, CM Pool to CM Pool account transfers and Delivery-Out Instructions, etc. For example, pay-in for trades executed on 'Monday' will be on Wednesday. Clients will have to submit instructions to their Participants upto 4 p.m. (in case of electronic instructions upto 6 p.m.) on Tuesday.
- Settlement instructions received from any Client beyond the aforementioned deadlines would be received by the Participants at Client's risk and acknowledgment thereof should be issued by Participants to the Clients, with suitable remarks.
- Participants should complete execution of pay-in instructions and ensure that they are in status "Accepted by NSDL" well before the pay-in deadline time of 10.30 a.m. on T+2. In this regard, attention of Participants is invited to our Circular No. NSDL/PI/2002/1004 dated June 22, 2002 regarding monitoring of messages and releasing of instructions.
Further, Participants are advised to bring to the notice of their clients that all instructions submitted to the Participants must have an execution date. The execution date can be current date or future date. Instructions will be valid till the pay-in deadline or till 'end of day' (EOD) of the execution date, whichever is earlier. In case the account does not have sufficient balance before pay-in deadline or till EOD, such instructions will fail. SEBI has also intimated the following:
- Depositories would download the processed pay-in files to the exchange / Clearing House / Clearing Corporation latest by 11:00 a.m. on T+2.
- Pay-out of securities by the exchange / Clearing House / Clearing Corporation to the Depositories by 1:30 p.m. on T+2.
- Pay-out of securities to be completed by the Depositories by 2:00 p.m. on T+2.
For and on behalf of
National Securities Depository Limited