The Hindu : Separate settlements for T+5, T+3 cycles

Online edition of India's National Newspaper
Wednesday, Mar 27, 2002

Business

Business

Separate settlements for T+5, T+3 cycles

MUMBAI MARCH 26. The Securities and Exchange Board of India today said the settlement for trades done on `T+5' basis up to March 31 and those carried under `T+3' basis from April 1 will be conducted separately.

The rolling settlement cycle on +T plus three basis+ would commence from April 1 and there would be overlapping of settlements for trades under two separate cycles, SEBI said in a release here today.

As the two settlements would be conducted on a single day it has been decided that they would be settled separately and not clubbed, it said.

Under the new dispensation, pay-in and pay-out for securities and funds would be carried out on the third day following the trade date, SEBI added.

The auction for shortage in deliveries would be conducted on the fourth day, it said adding pay-in and out for auction should not be carried later than `T+6' basis.

Meanwhile, the Bombay Stock Exchange has informed its members that the payout for the March 27 trades (T+5 basis) would take place after pay-in for April 1 trades (T+3 basis) and pay-out for March 28 trades would take place after pay-in for April 1 and two was complete.

The brokers and their clients should not enter into transactions on April 2 based on the anticipated pay-out from trades done on March 27 and 28, it added.

— PTI

Send this article to Friends by E-Mail

Business

Stories in this Section

Five parks to be set up

Peerless launches two small saving schemes

Sensex drops 50 points

Why India's globalisation has failed

Playwin's online lottery

Britannia's JV with Fonterra group

Separate settlements for T+5, T+3 cycles

Haldia Petro to rope in IOC

Exchange rates

Stock Market Index

Bullion rates