Trades which are settled through the Clearing Corporation/ Clearing House of an exchange are classified as "Market Trades".
Settlement of 'Sale trades' will be in accordance with the settlement calendar of respective stock exchanges. The pay-in process has the following steps
- Your clients give instruction to their DPs to transfer securities from their accounts to your pool account well within the pay-in time.
- For pay in of securities, you should give an instruction to transfer the securities from your pool account to your delivery account well within the pay-in time.
- Your transfer instruction to delivery account is taken as an authorisation to transfer securities from the delivery account to the clearing corporation/ house on the pay in day.
- You receive payment from the clearing house / corporation on pay-out
Off Market Trade
Trades not settled through the clearing house or the clearing corporation/ house of the stock exchanges are called "off-market trades".
- The selling client gives a delivery instruction to his DP to transfer securities from his depository account to the buying client's depository account.