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Automatic Delivery Out Instructions (Auto DOs)

Delivery-out instructions for moving securities from CM Pool Account to CM Delivery Account can be generated automatically by the respective Clearing Corporations based on the net delivery obligations of its Clearing Members. The Clearing Corporation can generate Auto DOs on behalf of those Clearing Members who have authorised it in this regard. The Auto DOs will be generated around the time of download of the delivery obligations to the Clearing Members. Such Clearing Members will not be required to give delivery-out instruction forms to the Participants for Pay-in to the Clearing Corporation in respect of the automatically generated DOs. The Clearing Members can know the Auto DOs either by way of download from the Clearing Corporation or through the Auto DO Report from the Participants or from SPEED facility on Internet.

Auto DOs will not be generated in the following cases and the Clearing Members will have to give Delivery-out Instruction forms to their Participants as usual

Non Pari-Passu shares or multiple ISINs

The Auto DOs will be generated only for the main ISIN. Example: A Clearing Member has to deliver 1000 shares of L & T for Pay-in. If he has 600 shares under ISIN INE018A01014 and 400 shares under ISIN INE018A01022 i.e. L & T (LE), the Auto DO will be generated for the entire 1000 shares under ISIN INE018A01014. In respect of the 400 shares lying under ISIN INE018A01022, the Clearing Member will have to give Delivery-out Instruction form to the DP. If the Clearing Member wants to deliver shares under an ISIN different from the one for which Auto DO is generated, then he has to cancel the Auto DO and give Delivery-out Instruction form to the DP for the ISIN he wants to deliver.

Irreversible Delivery-out (IDO)

Auto DOs will not be generated for IDOs required to be given for the purpose of margin payment / exemption, etc.

• In case IDO is given before generation of Auto DO, Clearing Members will have to ensure that an instruction is given to the DP subsequently for cancellation of the corresponding Auto DO alongwith Delivery-out Instruction form for the balance quantity.
• In case IDO is given after generation of Auto DO, Clearing Members will have to ensure that the Auto DO is first canceled before execution of the IDO. Further, a Delivery-out Instruction form for the balance quantity should also be given to the Participant.

Shifting of CM Pool Account from one Participant to another Participant

Auto DOs will be generated only in respect of one CM Pool Account i.e., the CM Pool Account which is designated for receiving Pay-out as of the date of generation of Auto DOs. The Clearing Member must carefully monitor the delivery instructions for Pay-in as the securities might be lying during the shifting process in both the CM Pool Accounts.

Clearing Members will be required to give Inter-settlement Instructions to the Participants for securities lying in another settlement as usual.

Participants can generate separate reports from the DPM both for Auto DOs and manual DOs.

All the existing features of DOs viz.; remaining valid till the NSDL Deadline time and partial delivery for insufficient balance will be applicable for Auto DOs also.