GENERAL MANAGER SECONDARY MARKET DEPARTMENT E-Mail : pkb@sebi.gov.in
SMD/POLICY/Cir - /03 February 6, 2003
The Executive Director/ Managing Director of all the Stock Exchanges
Dear Sir/Madam,
It has been decided to further shorten the settlement cycle from the existing T+3 rolling settlement to T+2 w.e.f. April 01, 2003.
We had vide our circular No. SMD/Policy/Cir-05/2002 dated March 26, 2002 intimated the activity schedule for the implementation of the rolling settlement on T+3 basis. In view of the shortening of the settlement cycle, the activity schedule has been revised and the following activity schedule shall be adhered to by the stock exchanges. The activity schedule has been finalised through a consultative process with various market participants viz. stock exchanges, broker associations, custodians, depositories, depository participants etc.
(The time limit for late confirmation to be fixed in a manner that the download of the final obligation files to the brokers by 1.30 pm is not delayed.)
The stock exchanges shall also put in place the following systems for effecting settlement on T+2 basis.
The stock exchanges are advised to bring to the notice of their members the following activity schedule to be adhered by the stock brokers in the T + 2 rolling settlement.
While the above schedule of activities for the exchange and the brokers is necessary for the implementation of the T+2 rolling settlement, the stock exchanges may also provide the following facilities desirable for further smoothing clearing and settlement process, though these may not be pre-conditions for introduction of T + 2 rolling settlement.
The stock exchanges are advised to develop a roadmap for implementation of the above desirable facilities and submit the same to SEBI.
Yours faithfully,
P. K. BINDLISH
Copy to
Managing Director, NSDL Managing Director, CDSL