Trades done by the members in the Equity Cash Segment may be cleared and settled by them as Self Clearing Members (SCMs) or through other types of Clearing Members as per the norms/guidelines issued by Securities and Exchange Board of India (SEBI) and as per the provisions of Rules, Bye-Laws and Regulations of BSE and ICCL as well as any other norms/circulars/guidelines which may be issued by BSE/ICCL in respect of the same from time to time.
Settlement Process
- Trades done in the securities under various groups in the Equity Cash Segment would continue to be settled on a T+1 basis i.e. the settlement of transactions done on T day i.e., trade day takes place on next business day (excluding Saturdays, Sundays and bank holidays) after the trade day.
- Settlement of Funds & Securities will be at Clearing Member (CM) level as per the present timelines for settlement related activities.
- In case of Trading Member (TM)/CM scenario, the positions would be netted at Client/Trading Member/Clearing Member level for normal scrips (i.e. netting of buy and sell positions in the same scrip for the same settlement) as at present for settlement purposes.
- For scrips traded on Trade-to-Trade (T to T) basis, the delivery positions would be settled on a gross basis (no netting of buy and sell positions) as at present. For this, the position would be grossed at Client/Trading Member/Clearing Member level for T to T transactions. Settlement would be at Clearing Member (CM) level.
- The clearing members would settle all obligations including margins arising out of trades done by them as trading members and also of those trading members for whom they have undertaken to settle as clearing members.
Pay-in of Funds and Securities:
Pay-in of funds will happen at CM level from designated settlement account of the CM with any of the ICCL empaneled clearing banks.
- Pay-in of securities will happen at CM level through the designated Demat pool account of the CM. The CMs will make the securities available in their designated demat pool accounts with the Depositories. The Depositories would generate the securities pay-in file on the scheduled pay-in day at CM level and provide the same to ICCL. Likewise, the CMs with funds obligations will make the funds available in their designated accounts with the ICCL empaneled clearing banks.
Auto Delivery Out (DO) Facility for securities pay-in:
- A facility shall continue be available to the Clearing Members as at present whereby Delivery-out instructions for moving securities from CM Pool Account by the Depositories for pay-in of securities in the respective settlement.
Pay-out of funds and Securities:
Pay-out of funds will be credited to the respective CM's designated settlement account with any of the ICCL empaneled Clearing Banks. Pay-out of securities will be credited to the demat pool account of the respective CMs.
The following table summarizes the trading and settlement cycle for scrips in Equity Cash Segment:
| T |
Trading on Trading Terminals and daily downloading of statements showing details of transactions and margins at the end of each trading day. |
| Downloading of provisional securities and funds obligation statements by member-brokers. |
| OTR (Give-up) entry by the member-brokers till 08:00 p.m. on T Day |
| T + 1 |
OTR Confirmations (Take-up) by the Custodians upto 07:30 a.m. Downloading of final securities and funds obligation statements by members by 09:30 a.m. |
| Pay-in of funds and securities by 11:00 a.m. and pay-out of funds and securities by 1:30 p.m. The member-brokers are required to submit the pay-in instructions for funds and securities to banks and depositories respectively by 10:30 a.m. |
| Auction on BOLT at 2.00 p.m. |
| T + 2 |
Auction pay-in and pay-out of funds and securities by 08:00 a.m. and 10:00 a.m. respectively. |
|
Facility for direct pay-out to client's (DPC) depository beneficiary Account
- DPC facility shall be available to the Clearing Members as at present.
- Clearing members would provide a file to ICCL through the member extranet portal in the existing format as at present for effecting pay out directly to respective demat accounts of TM's clients for a particular settlement type and settlement number.
- Based on the details provided in the said uploaded file by the members to ICCL, the pay-out of demat securities will be released in the demat account of the respective clients of the TMs.
- Clearing members would be provided RCBCF file pertaining to the details of DPC files uploaded by them as at present.
- Clearing Member/Trading Members must ensure to provide correct/proper demat account details of the respective clients.
In following cases the pay-out of demat securities will be released to the demat pool account of the Clearing Members, who will be required to release the same to their respective trading members and the trading members will in turn be required to release the pay-out securities to their respective clients' demat accounts as per the timelines stipulated by SEBI/Clearing Corporation from time to time:
- In case of absence of DPC file/instructions from Clearing Member
- In case of rejection of DPC pay-out in the Depository system
Existing facility of getting securities pay-out in the member specified Depository will be available as at present.
A. Confirmation of trades entered by custodial participants
The existing Custodian Clearing Members in Equity Cash Segment will continue to act as Custodian Clearing Members in Equity Cash Segment. For settlement through Custodians, the TMs would give-up their traded positions to Custodians through the online RTRMS module and the custodians will be able to confirm the same through RTRMS module as is being done at present. Accordingly, the obligations for confirmed positions will be transferred to the respective Custodians as at present.
B. Early Pay-in of Funds & Securities :
For a detailed process of Early Pay-in of Funds & Securities, members may refer
ICCL Notice No.20190227-45 of February 27, 2019.
C. Auction settlement files would be generated at Clearing Member level as at present.