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Deferral Products in the Rolling settlement and Introduction of Uniform Settlement Cycle

Jun 21, 2001
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Circulars

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

SMDRP/Policy/CIR-33/2001
June 21, 2001



The President/Executive Director/Managing Director
Of all the Stock Exchanges
 

Sir/Madam,

Sub :- Deferral Products in the Rolling settlement and
Introduction of Uniform Settlement Cycle

The Exchanges are advised to comply with the following

  1. All deferral products namely ALBM/BLESS/MCFS/CNS shall cease to be available for all scrips except for transitional measure indicated in point number 2 below.
  2. In order to give the market adequate time for orderly unwinding of positions, the following transitional mechanism will be put in place.
  1.  
    1. All outstanding deferred positions as on May 14, 2001 shall be compulsorily liquidated by September 3, 2001.
    2. Any additional deferred positions taken on or after May 15, 2001, in addition to (a) above shall be compulsorily liquidated by July 2, 2001.
    3. No new deferred positions shall be permitted from July 2, 2001 onwards.
    4. The exchanges shall be required to monitor the positions of the members, announce plan for phased liquidation of positions between July 2, 2001 to September 3, 2001 and ensure that the above schedule is adhered to.
  1. The liquidation of outstanding positions as on July 02, 2001 shall be allowed only with the approved deferral products in the rolling settlement.
  2. A circular no. SMDRP/Policy/cir-32/2001 dated May 24, 2001 was issued advising the exchanges that rolling settlement would be introduced for additional 251 scrips from July 2, 2001 bringing the total number of scrips in rolling settlement to 414 scrips by that date. The stocks which are not on the compulsorily rolling settlement from July 2, 2001 will be traded under compulsorily rolling settlement with effect from January 2, 2002.
  3. In the interim period i.e. between July 2, 2001 and January 2, 2002, stocks which are not under compulsorily rolling settlement would be traded on uniform settlement cycle (Monday to Friday) with effect from Monday, July 2, 2001 on all exchanges.

Yours faithfully
 
 

P K Bindlish
Deputy General Manager
Secondary Market Depository,
Research & Publications Department
e-mail : pkb@sebi.gov.in