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Trades which are settled through the Clearing Corporation/ Clearing House of an exchange are classified as "Market Trades".

Market Trade

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.

Market Trade

• At the time of pay out of securities, you receive credit of the securities into your receipt account from the clearing house/ corporation
• These securities are then moved into your pool account automatically.
• You give an instruction to your DP to transfer securities from your pool account to the receiving clients' accounts.

Off Market Trade

• To receive securities from the selling client's depository account, the buying client must give a receipt instruction if he has not already given a standing receipt instruction to his DP.