Trading and settlement of trades in dematerialised securities

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SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, B Wing, First Floor,
224, Nariman Point, Mumbai 400 021

To,
All Stock Exchanges/Depositories/
Custodians and AMFI/RAIN
 
 

Dear Sirs,

Trading and settlement of trades in dematerialised securities

Please refer to our earlier circular no. SMDRP/Policy/Cir-49/2000 dated October 16, 2000 advising that there should be a time gap of three months between the date for establishing connectivity by the companies with both the depositories and the date of commencement of compulsory dematerialised trading. It was further advised that the date announced for compulsory dematerialised trading for the scrips as per SEBI circular no. SMDRP/POLICY/Cir-23/2000 dated May 29, 2000 would henceforth be treated as the date by which the company should establish connectivity with both the depositories. The compulsory dematerialized trading in these companies will commence after three month from that date. It was also mentioned in the circular that the companies which fail to establish connectivity with both the depositories on the scheduled date would be traded only on the 'trade for trade' settlement window of the exchanges from the following settlement period.

In accordance with the aforementioned circulars dated May 29, 2000 and October 16, 2000, out of the 280 scrips required to establish connectivity with both the depositories by March 26, 2001, 129 companies have now established connectivity. These 129 scrips (Serial No. 1 to 129of annexure 'A') would be traded compulsorily in dematerialized form by all investors with effect from June 25, 2001. The 142 scrips (Serial No. 130 to 271 of annexure 'A') which have not established connectivity would be traded only on "trade for trade" segment of the stock exchanges, from the settlement period commencing on or immediately after April 23, 2001.

Currently scrips of 636 companies have been included for trading only on 'trade for trade' settlement window of the exchanges. Out of these, 55 companies (Serial Nos. 272 to 326of annexure 'A') have established connectivity with both the depositories. These scrips shall be traded on the normal trading segment where deliveries can be made either in physical or dematerialised form with effect from April 30, 2001 and compulsorily in dematerialised form 3 months after that date i.e. from July 30, 2001.
 
 

Yours faithfully,  
  
 

P. K. KURIACHEN
DEPUTY GENERAL MANAGER
SECONDARY MARKET, DEPOSITORIES,
RESEARCH & PUBLICATIONS DEPARTMENT

 Annexure ‘A’