To
All Custodians of Securities

Dear Sir,

It has been decided to shorten the settlement cycle from the existing T+3 rolling settlement to T+2 rolling settlement w. e. f. April 1, 2003. After detailed deliberations with various market participants, a time schedule for the implementation of T+2 rolling settlement from April 1, 2003 was prescribed by SEBI on January 3, 2003. A summary of the time schedule is as follows:
 

S. No.	Day	Time	Description of activity
1	T		Trade Day
2	T+1	By 11:00 a.m.	Confirmation of all trades (including custodial trades). Facility of an exceptional window for late confirmations would be made available by the exchanges.
		By 1:30 p.m.	Processing and downloading of obligation files to brokers / custodians
3	T+2	By 11:00 a.m.	Pay-in of securities and funds
		By 1:30 p.m.	Pay-out of securities and funds

The Custodians shall adhere to the following activities for implementation of T+2 rolling settlement w.e.f. April 1, 2003:

1. Confirmation of the institutional trades by the custodians latest by 11.00 a.m. on T+1. An exception window would be provided by the exchanges for late confirmations for an additional fee but in any case the confirmation should be made before 1:00 p.m. on T+1.
2. The Custodians shall issue instructions in the physical form upto 4 p.m. and in electronic form upto 6 p.m. on T+1 to the DPs for pay-in of securities.
3. Pay-in to be made before 10:30 a.m. on T+2.

G.S. Reddy